NC Budget and Tax Center

Who really benefits from House tax plan?

This is the second of a six-part blog series. (See Part 1)

What would the House tax plan mean for North Carolina taxpayers? In these blog posts, we 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.

Who really benefits from House tax plan?

Angela and Todd live in the coastal region of North Carolina and the married couple has two kids, one which has a disability. Todd works as an assistant manager at a manufacturing plant and Angela is a stay-at-home mom and cares for their disabled child as well as their 3-year old son. Angela started a home-based hand crafting business last year and together the couple earns around $41,000 in income.

Under the House tax plan, this household would see its tax load increase compared to what it would pay under current tax laws. Under the House tax plan, elimination of the personal exemption allowance would increase the family’s taxable income by about $4,000 and expanding the sales tax base to include  more good and services means the couple would also spend a larger share of its income on sales taxes. As the couple works to meet their family’s needs, they wonder who actually benefits from the tax plan that is touted as a great thing for North Carolina.

Check Also

New budget a roadmap full of potholes and an unclear destination

A new BTC report highlights how the new ...

Top Stories from NCPW

  • News
  • Commentary

Any protection the courts offer Dreamers is temporary, but all eyes are on the U.S. Supreme Court to [...]

The good news is that the levels of GenX in Wilmington’s drinking water is testing consistently belo [...]

This week NC Child and the NC Institute of Medicine release the 2018 Child Health Report Card, an an [...]

North Carolina’s public school system is one of the lowest funded in the nation when adjusted for co [...]

In “Lessons on political speech, academic freedom, and university governance from the new North Caro [...]

Cracks are forming in the NRA’s death grip on American politics At some point, it’s going to happen. [...]

As the General Assembly wraps up its weirdly timed and generally ill-conceived winter session, it wo [...]

The post Dumb & Dumber & Dumbest appeared first on NC Policy Watch. [...]