Editorial: Don't spend it all in one place
What are you going to do with your $84 a year?
That’s how much you might get from the tax cuts passed by the General Assembly this week.
Sorry, that’s presumptuous, and probably inaccurate. We don’t know how much you are paid, but statistically it’s likely that you won’t get that much.
Legislative staff estimated that a family of four with a household income of $60,000 would see its state tax bill cut by $84. Anyone making less – the average household income in North Carolina is $44,000 – will see less of a cut.
But that family of four better not plan on holding on to that $84. Among other provisions of the tax bill, starting next year there will be no more sales tax holiday in August for the purchase of school supplies, computers and back-to-school clothes. There also will be no more October sales tax holiday for the purchase of Energy Star appliances.
The tax cuts will reduce state revenue by a half billion dollars or so a year. We won’t find out the details of what the state is going to cut to make up for that until the spending plan comes out, presumably in the coming week.