Estate Planning

NC Democrats Agree on Tax Increases

By Gregory Herman-Giddens

Democrats in the North Carolina House and Senate reached a compromise on tax increases yesterday.  Briefly, the proposal would:

• Increase income taxes by 2%
• Increase sales tax by 1% (to 7.75% in most counties)
• Increase cigarette taxes by 10 cents per pack
• Increase beer, wine and liquor taxes

The income and sales tax increases are supposedly temporary, for a two year period.  There are no additional sales taxes for certain services as contained in the earlier Senate proposal.

The only good thing I can say about this proposal is that at least the increased income taxes can be deducted for federal tax purposes (for those that itemize deductions).  Additional sales taxes would not necessarily be deductible for those who deduct income taxes rather than sales taxes.

Full post as published by North Carolina Estate Planning Blog on July 23, 2009 (boomark / email).