Brittney Burns – Staff Writer
Macon County’s House of Representatives member Kevin Corbin joined fellow conservatives to introduce House Bill 356 last week, also known as the Tax Reduction Act of 2017.
The income tax relief in House Bill 356 is expected to save taxpayers $64.5 million in the 2017-18 fiscal year and $124 million in the 2018-19 fiscal year, according to its sponsors.
“We are building a tax code that benefits everyone in North Carolina,” said Corbin. “The Tax Reduction Act of 2017 will continue to lower personal income taxes for the middle class, lower taxes on large and small businesses alike located in North Carolina, and attract manufacturing jobs.”
House Bill 356 would raise North Carolina’s standard deduction from $17,500 to $18,500 for married couples filing jointly and from $8,750 to $9,250 for single filers.
According to Corbin, the legislation is beneficial to families and small businesses throughout the state.
“The House tax plan for 2017 continues the good work that has been done over the last few years,” said Kevin Corbin “Because of responsible budgeting and spending, and job growth spurred by solid economic policies, North Carolina is projected to have a budget surplus of over a half billion dollars. Our tax plan incentivizes good paying manufacturing jobs and continues to lower personal income taxes, setting the stage for increased economic growth.”
House Bill 356 also allows North Carolina companies to invest more in their workforce and equipment by tax exempting major manufacturing machinery, helping the state attract large employers and compete with regional neighbors who offer job creators the same tax relief. The tax reform is expected to save North Carolina businesses $50.8 million per year.
Senate Republicans also pitched sweeping cuts to personal and corporate income tax rates as part of a plan they say would save businesses and individual taxpayers a combined $1 billion a year.
The Senate’s tax plan is different from the House’s but according to sponsors, would benefit the majority of the state. According to Senate Finance Chairman Tommy Tucker, “Ninety-nine percent of all income taxpayers will either receive a tax cut or pay zero income tax.”
The proposals made by both the House and Senate are the largest in a series of income tax cuts since Republicans took control of the legislature in 2011.
The Senate plan would increase the deduction from $17,500 to $20,000 for a married couple filing jointly, with similar increases for other tax status categories.
The House’s tax plan leaves the personal income tax rate the same, while the Senate wants to reduce the personal income tax rate from 5.499 percent to 5.35 percent, which it says would be one of the lowest rates in the country.