Carolina Journal’s Barry Smith reports here on Tuesday’s news conference about the impact of tax reform passed by the legislature and signed into law by the governor.
Gov. Pat McCrory used the deadline for filing income tax returns to tout the historic tax reform package that he signed into law last year.
“Ultimately, it’s about North Carolinians keeping more of their hard-earned money for their paychecks, so they can buy, save, and invest more for their families,” McCrory said during a Tuesday news conference at the Doubletree Brownstone Inn in Raleigh sponsored by the John Locke Foundation.
McCrory, a Republican, was joined by state Sen. Bill Rabon, R-Brunswick, state Rep. David Lewis, R-Harnett, John Locke Foundation President John Hood, state director of the National Federation of Independent Businesses Gregg Thompson, and Jonathan Williams, director of the American Legislative Exchange Council’s Center for State Fiscal Reform.
“It’s about providing tax stability for business owners, so they can grow and put more people to work building North Carolina’s economy,” McCrory said.
So exactly what is at the heart of the reform?
The highlights of the tax reform package included establishing a flat rate for personal income tax. That rate dropped to 5.8 percent on Jan. 1 and will drop to 5.75 percent in 2015 and thereafter. Previously, the tax rate ranged from 6 percent to 7.75 percent, depending on income.
The corporate tax rate, which was at 6.9 percent, dropped to 6 percent at the beginning of the year. It will drop to 5 percent next year, and decrease further if certain tax collection triggers are met.