Tax Exemptions to Expire
Beginning January 1st, some popular money-saving tax deductions will be eliminated. The state's income tax rate is going down for every taxpayer in the new year, but some previous deductions will expire. Exemptions on certain retirement income will be no more. Tax credits for childcare expenses and education expenses will be eliminated. Parents will no longer be able to deduct their college saving's accounts. Critics say these changes hurt the middle class.
"It's bam bam bam bam, one negative thing after the other as far as being a middle class person raising children in North Carolina," said Charlotte resident and mother of two Rebecca Herbert. "We might not make it through their college years here, we might have to leave the state again, it's depressing to me."
The governor and state republican leaders have said the tax reform package will mean taxpayers will be able to keep more money thanks to the changes. But, they say this does not mean literally every single individual.