"More Money In Your Pocket"
If there is one thing you should know about the changes we’ve made to North Carolina’s tax code, it is that the vast majority of North Carolinians are keeping more of their own tax dollars. Personal income and sales taxes have been cut significantly for North Carolinians of ALL incomes.
Tax reforms enacted by the legislature cut taxes by close to $2.7 billion in FY 2015-16.
We ensured taxpayers married filing jointly pay no state personal income tax on their first $15,500 of income. And next year the personal income tax rate will drop even further to 5.499 percent. When Republicans assumed leadership in 2011, even North Carolinians in the lowest income bracket paid a 6 percent rate.
In 2017, North Carolina families and small businesses will be saving another $720 million annually on their personal income taxes. That is compared to just $166 million in sales tax base expansion.
The tax reforms we passed are working – by broadening our base and lowering our rates, we’re boosting the state’s climate for job creation, driving down unemployment and returning more money to the North Carolina families and small businesses that earned it.
North Carolina’s per capita personal income is growing faster than the national average. And even though we’ve dramatically lowered taxes, we’ve also increased North Carolina’s average per pupil spending up to pre-recession levels.