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

Absurd takes from Berger and Forest on the courts and the Constitution

Republican legislative leaders continue to scramble to distract ...

Top Stories from NCPW

  • News
  • Commentary

More than a month after a deadline to correct faulty campaign finance reports, N.C. Sen. Ralph Hise [...]

Even before he dropped the gavel on the Senate Finance Committee meeting, Sen. Jerry Tillman, a noto [...]

The $23 billion budget deal speeding through the N.C. General Assembly this week includes a platoon [...]

Royal Diadem Jewelers in Greensboro sets itself apart in a number of small ways - fast and friendly [...]

The final budget that lawmakers have proposed fails to strengthen the foundation of North Carolina’s [...]

Most of the initial headlines about the final budget agreement announced Monday afternoon by legisla [...]

Unexplained, backroom maneuver would rob already underfunded anti-poverty program There’s no denying [...]

Women and their access to health care has been in the news these past few months, as the plan to rep [...]

Featured | Special Projects

Trump + North Carolina
In dozens of vitally important areas, policy decisions of the Trump administration are dramatically affecting and altering the lives of North Carolinians. This growing collection of stories summarizes and critiques many of the most important decisions and their impacts.
Read more


HB2 - The continuing controversy
Policy Watch’s comprehensive coverage of North Carolina’s sweeping anti-LGBT law.
Read more