Many people take advantage of the New Year to check in with their priorities and set goals for the next 12 months. Some people want to make better decisions for their health, while others resolve to spend more time with their families.
An Offers.com survey found that North Carolina’s most popular New Year’s Resolution was to save money, with 52 percent of respondents saying that was their top goal for 2019.
Luckily for all North Carolinians, we are off to a good start. Both the state personal and corporate income tax rates dropped on the first of January this year.
The personal income tax fell from 5.49 percent to 5.25 percent. This means that North Carolinians will keep more of their paychecks.
The corporate income tax decreased from 3 percent to 2.5 percent. This is also good news for North Carolina citizens. When corporations pay less taxes, they can pass those savings along to their workers in the form of higher wages and to their consumers through lower prices.
The state is moving in the right direction, but there is still plenty of work to do to help North Carolina families keep more of their hard-earned money – thus helping them achieve their financial goals for 2019 and into the future.
First, the state should eliminate the corporate income tax altogether. This could attract more businesses to the state, drive up wages, and curb some of the corporate cronyism that occurs when the state issues tax breaks to only a few companies.
Second, the state should be on guard against unnecessary and wasteful spending that might incentivize an increase in the personal income or sales tax rates. One such proposal is Medicaid expansion to cover non-needy populations. In 2019, state budget writers should remember that North Carolina families ultimately pay the price for expanding government spending.
Over half of North Carolinians want to save more money in the new year. Individuals – not government – know how best to manage their own financial resources. So, what can the state can do to help North Carolinians? Manage their tax revenue with fiscal responsibility on core government services and create an environment that allows the free market to work.
Wishing you all the best in freedom for 2019 – Happy New Year, from your friends at the Civitas Institute.