Corporate Tax

Legislature reaches settlement on masks in colleges, corporate tax cuts payments | Authorities and politics

At least two Senate Democrats are required for a successful veto-override vote with a full presence of 50 Senators.

The latest version contains several tax proposals.

The corporate tax rate would be reduced from the current 2.5% to 0% in 2028. The rate of 2.5% is already the lowest among the 44 states that have a corporation tax.

Senate Republicans have insisted for years that the elimination of corporate taxes is critical to North Carolina’s long-term economic success.

Since 2013, the rate has been reduced from 6.9% by the Republican-controlled legislature to 2.5%, which went into effect in 2019.

Senator Paul Newton, R-Cabarrus, and main GOP sponsor of the revised HB334, said on June 10th, confidence that North Carolina would see sufficient growth in other tax revenues to offset the losses allowed in the bill through at least 2028.

HB334 would also cut state income tax from 5.25% to 4.99%, while increasing the state child tax deduction by $ 500 to a maximum of $ 3,000 per year for families claiming the state child tax credit.

Income tax withholding would increase from $ 21,500 to $ 25,000 for a married couple, from $ 16,125 to $ 19,125 for a householder, and from $ 10,750 to $ 12,750 for a single person. These changes would take effect on January 1st.

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