With tax reform debates in full swing here in NC, the predictable left-wing spin is that anything that drifts from the status quo would result in a “big tax break for the rich at the expense of the poor.” One recent example is this from N&O reporter John Frank:
The median North Carolina family would get a modest tax break while wealthy taxpayers may see a significant cut under a sweeping bill primed for a landmark House vote Friday.
A married couple with two children making $40,000 a year would get an estimated $40 tax break when the legislation is fully implemented, according to a new legislative analysis. If the same family earned $250,000 a year, it would see a roughly $1,700 break. The tax cut increases to at least $12,500 if the family makes $1 million.
Well, duh. Of course those paying a boatload of money in taxes will receive a larger break – dollar wise – than those paying relatively few dollars in state income taxes.
This does lead to the question: who does pay income taxes in NC? After all, the far left cling to a “progressive” income tax because they feel it is more “fair,” in that is compels those who earn more income to pay a larger percentage than those who earn less income.
The latest edition of the North Carolina Comprehensive Annual Financial Report (CAFR) shows a breakdown of who is paying state income taxes in NC.
The main findings (as of 2010):
- The bottom 51% of income earners paid 4.5% of personal income taxes (that’s four-point-five percent)
- The top 19% of income earners paid 71% of personal income taxes
- The top 6% of income earners paid 46% of personal income taxes