NC Budget and Tax Center

All that glitters is not gold

This is the third of a six-part blog series. (See Part 1 and Part 2)

What would the House tax plan mean for North Carolina taxpayers? In this blog series 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 demonstrate that middle-, fixed- and low-income taxpayers would lose under this plan while the wealthiest will gain.

All that glitters is not gold

Ms. Grace is a 67-year-old retired North Carolina resident who enjoys spending time with her grandkids and volunteering in her community. Gracie, as her neighbors call her, lives alone and receives around $12,000 in taxable income, which supplements her social security benefits and helps pay for her monthly medical expenses and other necessities.

Under the House tax plan, the amount of income and sales taxes paid by Gracie would increase, about 6 percent overall, compared to what she would pay under current tax laws. This increase in tax load is a result of the tax plan expanding the sales tax base to cover more goods and services as well as the elimination of the additional standard deduction allowance provided to elderly tax filers. Paying more in income and sales taxes—along with annual inflation— would decrease the amount of money available for Gracie to remain self-sufficient and ensure that her basic needs are met. As Gracie follows the current tax reform debate, she listens more closely for further insight regarding how the competing tax plans would impact individuals such as her. While playing with her granddaughter and chatting with her son about the potential impact of the House tax plan on her she states, “All that glitters is not gold.”

Check Also

Boosting investment in early childhood development, a no-brainer for NC

Early childhood development programs are not typically viewed ...

Top Stories from NCPW

  • News
  • Commentary

On Monday morning, there was only one way left to save the Court of Appeals and a few hours with whi [...]

The political compromise that repealed HB2 was enough for the NCAA and ACC, both of which have retur [...]

Conference comes a day after new report lauds benefits of same-day registration The new line-up for [...]

North Carolina’s largest public school system may be warning of “enormous disruptions” without speed [...]

How many times do we have to say it? Well, it’s worth repeating – especially in the aftermath of rec [...]

As the national pundits weigh in on President Trump’s first 100 days in office and the General Assem [...]

How the General Assembly is spending “crossover week” and what it ought to be doing The last week of [...]

To casual observers, the recent controversy surrounding public school class-size mandates in grades [...]

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