Top of the Morning

Top of the morning

One of the most contentious parts of the House revenue package that passed the Finance Committe Tuesday night is the income tax increase on the wealthiest North Carolinians. People who earn more than $200,000 will pay 8.25 percent, up from the current 7.75.

People who earn more than $500,000 will pay 8.5 percent. It is important to note that the higher tax rate will be paid only on the earnings above $200,000 and $500,000.

The tax on the wealthy is being called class warfare, a job-killer, and a host of other things. Largely left out of the discussion is that the wealthiest one percent of taxpayers currently get a break in state and local taxes, paying significiantly less taxes as a percentage of their income than the poorest 20 percent of taxpayers.

You can find all the details in a February 2008 report from the N.C. Budget and Tax Center. The poorest 20 percent, with an average income of $10,000, pay 10.1 percent of their income in state and local taxes.

The wealthiest one percent, with average incomes of $970,000, pay 7.1 percent of their income in taxes.

Millionaires pay a lower percentage of their income in state and local taxes than people living well below the poverty line.

Remind me again why raising taxes on the rich is class warfare.

One Comment


  1. IBXer

    June 10, 2009 at 12:34 pm

    “Even before the $125 million raised by the tobacco tax was eliminated, the revenue would not spare education and human services from damaging cuts.” -Chris Fitzsimon

    So new taxes will not prevent cuts and yet you people want to push forward with taking more money from citizens in the midst of a recession. Raleigh is full of idiots these days.

Check Also

Anthony Scaramucci thought HB2 was “shameful”

Anthony Scaramucci, President Trump’s new communications director, was ...

Top Stories from NCPW

  • News
  • Commentary

The UNC Board of Governors is holding its last meeting of 2017 Friday, where the latest of its many [...]

Just south of Candler off the Pisgah Highway is a lovely piece of property on Little Piney Mountain [...]

Veteran North Carolina education policy expert Kris Nordstrom has authored a new and vitally importa [...]

When Joni Robbins, a section chief in the N.C. Department of Public Instruction, closes bidding next [...]

“All speech is free, but some speech is more free than others.” This seems to be the motto of the cu [...]

Trumpists prepare to raze another vital common good law It’s hard to keep up these days with the flo [...]

The post That’s how ‘Humbug’ is done appeared first on NC Policy Watch. [...]

The solid citizens of Johnston County, N.C. – in a fateful quirk of geography – for several years ha [...]

Featured | Special Projects

NC Budget 2017
The maze of the NC Budget is complex. Follow the stories to follow the money.
Read more


NC Redistricting 2017
New map, new districts, new lawmakers. Here’s what you need to know about gerrymandering in NC.
Read more