North Carolina – NC Income and corporate taxes lower in 2017

POSTED ON JANUARY 16, 2017 BY MT.AIRY NEWS

By Andy Winemiller – awinemiller@mtairynews.com

A new year also brings a new tax structure in North Carolina.

“The state could lose about $700 million a year due to a cut in income tax rates, but that is expected to be made up by expanded sales and use taxes.

N.C. Sen. Shirley Randleman, a Wilkes County Republican who represents Surry County, said all changes are part of a plan which began when the Republicans took control of the N.C. General Assembly in 2011.

“When we took over, we faced a $2.5 billion budget shortfall and had a $2.8 billion debt to the federal government,” said Randleman. “In 2011, income tax collections also dropped by 40 percent from the year before.”

Randleman said it became apparent a reliance on income taxes didn’t create the stability needed to appropriately fund the government. In 2011, the legislature cut everything it could to balance the budget, and then it began implementing a revenue-neutral plan to use a more reliable source of revenue to pay for services: sales and use taxes.

“We were looking for a predictable stream of revenue,” said N.C. Rep. Sarah Stevens, a Mount Airy attorney”…

For further information:

https://mtairynews.com/news/47501/income-and-corporate-taxes-lower-in-2017