House tax plan does not bode well for the Hurt family

This is the first of a six-part blog series.

What would the House tax plan mean for North Carolina taxpayers? In a series of blog posts, we aim to highlight the experience of sample taxpayers under the House tax plan. In conjunction with a distributional analysis of the tax plan which gives a better picture of the full impact, these fictional but true to life profiles will demonstrate that middle-, fixed- and low-income taxpayers would lose under this plan while the wealthiest will gain.

House tax plan does not bode well for the Hurt family

Dan and Alice Hurt are both proud natives of the Tar Heel state. The married couple has two young kids, ages 3 and 5, and have lived in Western North Carolina their entire lives. Dan works full-time as an hourly-wage employee for a large retailer and Alice works part-time as a server at a cafe in their local town. Together the couple earns around $20,000 in income and depends on every available dollar to help meet household needs and the demands of two growing children.

Under the House tax plan the Hurt household would see the amount of state and local taxes it pays increase compared to what the family would pay under North Carolina’s current tax laws. This increase in the family’s tax load is largely due to expanding the sales tax base to include more goods and services. While the tax rate cuts in the House tax plan appear appealing to the eye, the Hurt family would see its tax load increase not decrease. Consequently, meeting household needs and the demands of two kids would likely become more challenging for the Hurt family.

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  1. [...] is the third of a six-part blog series. (See Part 1 and Part [...]

  2. [...] taxpayer should not be extrapolated to the entire population. As we are explaining in a blog series this week, there are many taxpayers who won’t experience a tax cut in the same way as the Fiscal Research [...]