Family F: $52,000 in Adjusted Gross Income
Family F consists of a retired couple, husband age 72, and wife, age 68. The federal adjusted gross income is $52,000, with $29,000 from pensions and $23,000 from social security. The husband was a state employee and the wife was employed in the private sector. Family F contributes $2,000 to the 529 savings plan for college, and both spouses attend 2 Hornets games (ticket price = $82 each), 3 concerts (ticket price = $60 each), and 4 movies (ticket price = $6 each). The family files a joint return and uses the standard deduction. Charitable contributions amount to $1,600.
| 2013 | 2015 | |
|---|---|---|
| Federal adjusted gross Income | 52,000 | 52,000 |
| Deduction for Contribution to saving fund for college (529 plan) | 2,000 | 0 |
| Deduction for Social Security income | 23,000 | 23,000 |
| Deduction for pension income | 6,000 | 0 |
| North Carolina adjusted gross income | 21,000 | 29,000 |
| Standard Deduction | 7,200 | 15,000 |
| N.C. personal exemption allowances | 5,000 | 0 |
| N. C. taxable income | 8,800 | 14,000 |
| N.C. income tax | 530 | 805 |
| Consumer use tax | 6 | 10 |
| Income Tax due | 536 | 815 |
| Credit for children (100 per child) | 0 | 0 |
| Credit for child and dependent care expenses | 0 | 0 |
| N.C. earned income tax credit | 0 | 0 |
| Credit for charitable contributions for non-itemizers | 39.2 | 0 |
| Net income tax due | 497 | 815 |
| Sales taxes | ||
| – Tickets for 2 Hornets games | 0 | 22 |
| – Tickets for 3 concerts | 0 | 24.3 |
| – Tickets for 4 movies | 0 | 3.24 |
| Total Taxes | 497 | 864.54 |
Thus, Family F will see a large increase in its total taxes; total taxes almost doubled. Retirees on fixed income do not need a tax increase just to pay for the tax reductions of high income families and individuals.
Voting 2016 