Continuing the model for NC tax reform, the model that has helped lead us to a solid economic recovery, the legislature passed additional tax reductions this session. These were directly targeted towards helping those with lower to middle incomes, as well as small businesses. Most of these will be fully recognized by 2019. Some of the highlights for these reductions include:
· Families and small businesses will keep $530 million of their hard-earned income over the next two years.
· 99% of North Carolinians will see a tax reduction
· Personal income tax rates will fall from 5.499% to 5.25%
· Corporate income tax rates will fall from 3.0% to 2.75%
· The personal standard deduction is raised to $20,000
· The franchise tax for small business and S corps has been simplified and reduced by creating a $200 flat tax on the first $1 million of a business’s net worth