The N.C. Senate budget plan includes a $1 billion tax cut over the biennium. JLF’s Joe Coletti details the changes here. Take a quick look and then read the whole piece. It includes lots more great information about the Senate’s restrained spending plan.
Personal Income Tax
-
Reduces the personal income tax rate from 5.499 percent to 5.35 percent, a 2.7 percent reduction
-
increases the Standard Deduction from $8,750/$14,000/$17,500 to nice, round numbers: $10,000/$15,000/$20,000
-
changes the child tax credit to a phased tax deduction that results in higher tax savings for those in the lowest income tiers
-
adjusts the cap on the mortgage interest and property tax deduction to a tiered deduction based on income with a ?maximum allowable deduction of $22,000, instead of $20,000. My back-of-the-envelope calculation suggests that, at the average property tax rate of $1.08 per $100 valuation, an owner with a 5 percent interest rate would ?need an average outstanding principal more tha n?$325,000 over a year to exceed the $20,000 cap
