As previously noted, Republican Senate Leader Phil Berger has launched an effort in North Carolina to reform the tax code and cut taxes for North Carolinians.
Berger has been quoted as saying it’s “the largest tax cut in state history” and will see as much as $1 billion returning to citizens.
The initiative has generated some buzz around Berger as a potential U.S. Senate candidate in 2014 and his exposure level could get a boost when President of Americans for Tax Reform, Grover Norquist, visits North Carolina on May 16th to offer support for tax reform in NC.
The Tax Fairness Act would drop the state’s top income tax rate from 7.75 percent to 4.5 percent with the lowest tier of income earners (those making less than $12,000 per year) paying no income tax at all. Additionally, the corporate tax rate would drop from 6.9 percent to 6 percent and the estate tax would be eliminated entirely.
2008 saw North Carolina turn blue after being reliably red in the presidential elections, but in 2010 a wave of fiscal discipline sentiment swept the elections and the Republicans took both houses of the North Carolina general assembly for the first time in 114 years.
Currently, North Carolina is bordered by 3 states that all have lower rates. South Carolina with a top rate of 7 percent, Virginia with a top rate of 5.75 percent, and Tennessee which has no income tax at all.
With Republican Governor Pat McCrory winning in 2012 and the Republicans retaining control of the state legislature, the likelihood that Berger and his allies can push a bill through into law that would allow North Carolina to compete with its neighbors is very high.
The North Carolina GOP has launched a website which allows you to calculate what your savings might be under the Tax Fairness Act.