State Senate wants quick standard deduction increase

RALEIGH, N.C. (AP) — The state Senate has agreed to increase the amount of individual income not subject to North Carolina taxes even more.

The chamber voted unanimously Tuesday for legislation that would grow standard deductions by a total of $1,000 to $2,000 — depending on a person’s tax filing status — by next year. A married couple filing jointly wouldn’t pay taxes on their first $16,500 of income in 2016 and $17,500 in 2017. The legislature already agreed last year to raise deductions a little this year.

Increasing deductions lowers a filer’s tax bill and largely benefits people making less than $80,000. The bill would cost $145 million in state revenues to implement.

The bill contrasts with the House budget approved last week that would phase in the deduction increase over four years.

Comments are closed.