RALEIGH, N.C. — Tax cuts embedded in the new state budget will save North Carolina taxpayers more than $13 billion over the next five years. That’s mostly due to planned decreases in the state’s personal income tax rate, but it comes at a cost: Less for public schools and other government services.
The drop in the tax rate is in addition to an eventual phase-out of the state’s corporate income tax, and the North Carolina General Assembly also reworked the franchise tax businesses pay, simplifying it in a way expected to save companies hundreds of millions of dollars over the next few years.
“This budget continues the Republican-led legislature’s decade-long commitment to low taxes and responsible spending,” Senate President Pro Tem Phil Berger said in a statement when the budget passed, harking back to previous tax cuts passed by the GOP majority. “The multibillion-dollar surpluses these policies helped create are evidence that they’re working, and it means we can cut taxes even more.”
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