By Cedric Johnson
Public Policy Analyst, Budget & Tax Center
- House members have proposed repealing the state estate tax in 2013. The estate tax applies to the state’s wealthiest individuals and families and contributes to the state’s revenue system.
- Only a small number of North Carolina taxpayers are subject to the estate tax. For FY2010, only 123 taxpayers were subject to the estate tax and the number has dropped since then.
- Eliminating the estate tax would reduce state tax revenue by nearly $300 million over the next five years, according to the Fiscal Research Division.
- Eliminating the state estate results in state tax dollars going to federal government while making the state and local tax system even more upside-down.