The Republican Senate leaders of North Carolina proposed a lower income tax bill that intends to reduce the individual income tax rates in the state. In lieu of the reduction set up to 3.99%, the bill plans to reduce the taxes even further.On April 5, Republican Senate leader Phil Berger and the Senate Finance Committee chairmen of the chamber proposed a lower income tax bill. This bill reportedly intends to reduce the individual income tax rates in the state even beyond what is currently set to happen in 2027.
An article on ABC11 states that through a budget law in 2021, the current individual income tax rate of 4.75% was set to be reduced in yearly increments to 3.99% by 2027. By 2024, the individual income tax rate is expected to be reduced from 4.6% to 4.5%. However, with the lower income tax bill, the individual income tax rate is intended to be reduced from 3.99% even further to 2.49%.
Lower Income Tax Bill Still Gaining Economic Profit
According to an article in AP News, the Republican Senate leaders believe that the income tax reductions in the past have been successful in helping taxpayers while gaining economic profit all the same. Another Republican Senator, Paul Newton, stated that they believe the lower income tax bill will help North Carolina’s taxpayers while maintaining the revenue needed by the state.