- Joined
- Oct 13, 2010
- Messages
- 10,808
I'm not going to argue with you.
Suffice it to say, NC tax isn't cheap. But it also isn't the worst. Is that good, bad? I don't know. I lived in FL and loved not having income tax. I've lived in IL and see a different set of problems. My Dad's house is 1/2 value of mine in NC and he's paying 2x the tax. Not great for retirees.
The fact is NC is changing things. We have to see how this shakes out.
I pay zero attention to the news, so you'll have to tell me, or I'll find out in January
Since I'm within reach of the tax notebook (now sitting in my office instead of on the tablet), I'll fill in the details of the last NC legislative tax swizzle, assuming married, family of 4, standard deductions:
Net these and the total is what you pay NC tax on for 2011:
+ 2011 Federal Taxable Income
+ 2011 Federal Deduction (standard) = $11,600
- 2013 NC Standard Deduction = -$6,000
+ 2011 Federal Personal Exemption = $4,800
Net these and the total is what you pay NC tax on for 2012:
+ 2012 Federal Taxable Income
+ 2012 Federal Deduction (standard) = $11,900
+ 2012 Federal Exemptions (fam of 4) = $15,200
- 2012 NC Standard Deduction (-$6,000)
- 2012 NC personal exemption (-$10,000)
So in the 2011 case, they add $10,400 to the federal taxable income and hit you with a bill for 7% of that (7.75% if you're a slightly higher roller).
But in the 2012 case, they add $11,100 to the federal taxable income and hit it with their rate. It's not a big difference in this example, but it's the political slight of hand that annoys me; since they didn't change the tax rate tables, they claimed not to have increased taxes.