GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2011

H                                                                                                                                                    1

HOUSE BILL 879

Short Title:        Raise Income Tax on Millionaires.		(Public)
Sponsors:	Representatives Luebke, Hall, Harrison, and McGuirt (Primary Sponsors). For a complete list of Sponsors, see Bill Information on the NCGA Web Site.
Referred to:	Rules, Calendar, and Operations of the House.

May 4, 2011

A BILL TO BE ENTITLED

AN ACT to raise the income tax rate paid on highly compensated taxpayers.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 105-134.2(a) reads as rewritten:

"(a)       A tax is imposed upon the North Carolina taxable income of every individual. The tax shall be levied, collected, and paid annually and shall be computed at the following percentages of the taxpayer's North Carolina taxable income.

(1)        For married individuals who file a joint return under G.S. 105-152 and for surviving spouses, as defined in section 2(a) of the Code:

                                             Over                                  Up To                                            Rate

                                                      0                               $21,250                                           6%

                                           $21,250                             $100,000                                           7%

                                         $100,000                    NA$1,000,000                                           7.75%

$1,000,000 NA 8.5%

(2)        For heads of households, as defined in section 2(b) of the Code:

                                             Over                                  Up To                                            Rate

                                                      0                               $17,000                                           6%

                                           $17,000                               $80,000                                           7%

                                           $80,000                       NA$800,000                                           7.75%

$800,000 NA 8.5%

(3)        For unmarried individuals other than surviving spouses and heads of households:

                                             Over                                  Up To                                            Rate

                                                      0                               $12,750                                           6%

                                           $12,750                               $60,000                                           7%

                                           $60,000                       NA$600,000                                           7.75%

$600,000 NA 8.5%

(4)        For married individuals who do not file a joint return under G.S. 105-152:

Over                                  Up To                                            Rate

                                                      0                               $10,625                                           6%

                                           $10,625                               $50,000                                           7%

                                           $50,000                       NA$500,000                                           7.75%

$500,000 NA 8.5%"

SECTION 2.  This act is effective for taxable years beginning on or after January 1, 2011.