As if Governor Cooper couldn’t get more out of touch with the average North Carolinian, he took one more stab at it. This time taking aim at the take-home pay of the average hard working taxpayer.
“Democratic Gov. Roy Cooper wants North Carolina business leaders to speak up for public education funding by telling the Republican-controlled legislature to block additional income tax cuts set to take effect next year.” – News & Observer.
He’s not talking about taxes on the wealthy, estate “death” taxes, or any of the more politically expedient options that the Democratic party tends to gravitate towards. No, instead he’s talking about your income taxes. Tax rates that have fallen, tremendously, under the Republican leadership of the past seven years. In 2010, the income tax rates were 6-7.75%, with a standard deduction of $3,000. This year, that rate is 5.49% for everyone, and is set to drop to 5.25% next year. The standard deduction is also now $8,750.
Translation: you are now paying fewer taxes on a smaller amount of your income.
As Cooper encourages businesses to push back against lower taxes for you and I, keep a vigilant eye. Any business that is aiming to harm its workers by advocating for higher personal income taxes is no friend.
Meanwhile, tax revenues are up.
Second quarter revenue was $7.9 million above target and the state is essentially on track to reach the fiscal year’s $23.1 billion revenue target with a modest $43 million shortfall through half of the fiscal year. –The nonpartisan Fiscal Research Division of the North Carolina General Assembly.
A strong economy raises all tides.
“The economy is stronger than it was a year ago and is beginning to look like an economy that has entered into a true expansionary phase,” Chief Economist Barry Boardman wrote.
The question then remains, at what point do the current successes of tax reform change the minds of the tax-and-spend-ers? People’s paychecks are growing across the state and nation due to lower rates and higher standard deductions. With more money in their pockets, people are spending more, spurring on further economic growth. We’ve spent far too many years pushing a stalled economy. North Carolina is definitely leading the way and it looks like Cooper is just holding onto the past.