The Tax Foundation has highlighted a new American Legislative Exchange Council report touting the tax cuts enacted by the N.C. General Assembly earlier this year.
The Tax Foundation page mentions the “headline-grabbing beneficial reforms” in North Carolina and other states.
The 17-page ALEC report notes some of the main changes in North Carolina’s tax law:
— Replaced 3-tiered personal income tax structure with a modified flat tax.
— Lowered the top marginal rate of the personal income tax (from 7.75 percent down to 5.8 percent in 2014, and then 5.75 percent in 2015).
— Reduced the personal income tax across all income brackets.
— Lowered the corporate income tax rate (from 6.9 percent down to 6 percent in 2014, 5 percent in 2015, and the possibility of falling to 4 percent in 2016 and to 3 percent in 2017, depending on whether revenue growth targets are achieved).
— Eliminated the state’s death tax.
— Broadened the sales tax base.
— Eliminated multiple gross receipts franchise taxes, privilege taxes, and preferential sales tax rates.
