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 will demonstrate that middle-, fixed- and low-income taxpayers would lose under this plan while the wealthiest will gain.
A few people do win under House tax plan
Janie and Jeff are owners of a successful chain of hardware stores in North Carolina. They are married with two college-aged children and earn about $1 million a year in household income. They live in Raleigh and also enjoy a vacation home in Wilmington.
Under the House tax plan, their tax load would go down by $11,169, or almost 15 percent compared to current tax laws. When they realize what the difference would be in their tax bill, they are pleasantly surprised. They decide that if the plan passes, they will set aside the additional money from the tax cut to boost their retirement savings.