Are you better off now than you were, say, a year ago? For most of us that depends on whether the bank account is larger and we have more money in our wallets. In North Carolina, that depends on how much money you make.
This year, we all got a cut in our income taxes. Near the bottom of the income scale, your taxes went down about 0.2 percent, so you may not have noticed. In the middle of the scale the decrease was about 1.2 percent and the top earners saved almost 2 percent on income taxes. However, if you’re among the “working poor” and used the Earned Income Tax Credit in the past, forget it for the future because your Republican legislature repealed it.
Have you noticed that you’re spending more on your kid’s school supplies recently. It got worse this year when the tax holiday for school supplies was repealed. If your child is in college, their meal plan is now taxed for the first time. You also lost the deduction for your college savings plan.