The following changes in the tax law will force many middle and low income individuals to pay more in taxes.

  1. The deduction for medical and dental expenses is eliminated.
  2. The deduction for personal property taxes is eliminated.
  3. The deduction for casualty and theft losses is eliminated.
  4. The deduction for unreimbursed employee expenses is eliminated.
  5. The deduction for savings made through North Carolina’s college savings plan is eliminated.
  6. The $2,000 deduction on private retirement income is eliminated and the $4,000 deduction on retirement income of state workers is eliminated.
  7. The standard deduction is increased but personal exemptions are eliminated.
  8. There is no longer an additional standard deduction amount available for taxpayers age 65 or older.
  9. There is no longer an additional standard deduction amount available for blind taxpayers.
  10. The earned income tax credit is eliminated.
  11. The credit for charitable contributions for those who do not itemize their deductions is eliminated.
  12. The child tax credit is increased for some taxpayers, but the credit for child care expenses is eliminated.
  13. The credit for permanent and total disability is eliminated.
  14. The credit for property taxes paid on farm machinery is eliminated
  15. The credit for education expenses is eliminated.
  16. The credit for qualified long-term care premiums is eliminated.
  17. The credit for adoption expenses is eliminated
  18. New Sales Tax
  19. The tax on utility bills will rise from 3% to 7%
  20. The tax rate on mobile home sales had been 2%, capped at $300, and 2.5% on modular homes with no cap; the rate has now risen to 4.75% on both mobile homes and modular homes, with no cap.
  • The tax on a $35,000 single-wide mobile home has risen from $300 to $1,662.50.
  • The tax on a $75,000 double-wide mobile home has risen from $300 to $3,762.50.
  • The tax on a $90,000 modular home has risen from $2,250.00 to $4,275.00.

Who will this tax increase affect? Certainly not high income families, since they
do not purchase mobile homes or modular homes for residential purposes; it affects hard-working, middle income families who cherish the American goal of homeownership.

Tax Advantages for High Income Families