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

The Cape Fear River is damaged, contaminated by decades of human malfeasance, negligence and ignoran [...]

Legislative Services Officer Paul Coble appears to be violating the state public records law and is [...]

This morning, the state Supreme Court will hear oral arguments in the pivotal case of Silver, et al. [...]

Duke Energy has been fined $156,000 for 21 illegal seeps from coal ash basins at its Allen, Marshall [...]

These are extraordinary times in the American experiment with representative democracy. In Washingto [...]

Public education in North Carolina has its share of challenges, not the least of which has been the [...]

The post Time to come clean appeared first on NC Policy Watch. [...]

Tax Day in 2018 in North Carolina presents an opportunity to make sure our tax code allows us to mee [...]

Now hiring

NC Policy Watch is now hiring a Managing Editor – click here for more info.