The following article was written by Matt Caulder and is reproduced from yesterday’s NC Capitol Connection:
Both the House and the Senate have put forward tax cut plans for the coming biennial budget. The competing plans will be discussed in earnest as legislators work to craft a budget plan to send to the governor for signing before the new fiscal year starts July 1.
The Senate passed a bill that included roughly $1 billion in tax cuts earlier this month, while House legislators have a bill waiting in its finance committee that would cut taxes by about $500 million over the biennium.
The Senate bill includes changes to the state personal income tax system aimed at relieving the tax burden on the middle class that would ensure that an additional 94,000 people pay no income taxes.
The plan also includes changes for married couples and those with children as well as a cut to the corporate income tax rate.
Sen. Tommy Tucker (R-Union), who chairs the Senate Finance Committee, announced the tax plan would include tax cuts for both individual filers and businesses, continuing the Senate’s pattern of tax cuts over the last few years.
“What we are proposing today is a Senate tax plan that continues the majority party’s proven strategy of reducing taxes and putting more money into the pockets of North Carolina taxpayers,” he said. “What we’re doing today [is] we’re proposing a $1 billion middle-class tax cut, that’s right, a $1 billion middle-class tax cut. And under this plan, 99 percent of taxpayers in North Carolina will either receive a tax cut, or pay zero income tax.”
The House plan, titled the Tax Reduction Act of 2017, would also make adjustments to standard deductions but would largely make targeted changes to the tax code as opposed to the broader changes the Senate plan included.