NC Senate Republicans propose $1 billion tax cut

RALEIGH, NC (WWAY) — Republican lawmakers in the Senate unveiled a roughly $1 billion tax cut proposal that would affect middle class families, according to a news release.

The Billion Dollar Middle Class Tax Cut Act is sponsored by Sen. Jerry Tillman, Sen. Tommy Tucker, and Sen. Andrew Brock. They say it would reduce North Carolina’s personal income tax rate from 5.49 percent to 5.35.

The existing child tax credit would be converted into a progressive child tax deduction for families earning less than $120,000 per year.

The standard deduction for married couples filing jointly would increase from $17,500 to $20,000.

Under the bill, 99 percent of taxpayers would pay less or pay no state personal income taxes. Republican leaders say the bulk of the tax cut would benefit middle class and working families earning less than $50,000 per year.