Yesterday, North Carolina Senate Republicans unveiled a multi-billion dollar tax bill, whose centerpiece is a massive tax break for the state's richest earners. The GOP plan would cut the top income tax bracket nearly in half, "to 4.5 percent from the current 7.75 percent." To pay for it, "A married couple with two children making $30,000 a year would pay an estimated $1,000 more in taxes each year, according to a calculator on a political website designed to support the plan." [emphasis added]
That's because the plan expands state taxes to include "Social Security," "prescription drugs and food," and "nearly 170 types of services" that aren't presently taxed - including legal, accounting, and doctors' visits. Most of these new taxes will fall heaviest on low-income families and small businesses who can't afford, for instance, to hire their own in-house attorneys and accountants.
The plan also throws salt in the wounds of almost 500,000 working North Carolinians, who won't get access to affordable health insurance because GOP legislators already rejected Obamacare's Medicaid expansion. Thanks to the GOP's new health care taxes, coverage will be even more impossible for these families to afford, and most of them now also be hit with that thousand-dollar tax hike.