April Fool
Published March 17, 2015
by Gary Pearce, Talking About Politics, March 16, 2015.
A TAPster alerts us to another potential April surprise for taxpayers:
Republicans in the legislature left a little bag of stink on the doorsteps of millions of self-employed North Carolinians who’ll step in it when they calculate their state taxes in the next month.
The Repubs proudly boast of reducing state tax rates. They are unlikely to boast about their elimination of the exemption for the first $50,000 earned by a self-employed person.
Surprise! In the eyes of our friends at the Department of Revenue, it’s like you got a $50,000 raise that you have to pay taxes on.
Except you didn’t get a raise. And your state tax bill is going up dramatically.
It stinks to fool people like this.
March 18, 2015 at 4:06 pm
Richard L Bunce says:
Deduction only in effect for Tax Years 2012 and 2013.
When it was enacted in 2012 the folks over at NC Justice thought it was problematic. For instance...
"The deduction disproportionately benefits high-income businesses and
individuals. The micro-simulation model showed that 70 percent of the
tax cut goes to the top 20 percent of taxpayers with some net positive
business income, with the remaining 30 percent of the tax cut spread out
amongst 80 percent of taxpayers."
http://www.ncjustice.org/sites/default/files/BTC%20Brief%20-%20Business%20Tax%20Exemption_0.pdf
