HB 74, the Taxpayer Refund Act, would provide refunds to taxpayers up to a maximum of $125 for individual and $250 for a married couple.
Counting administration costs, the refund program would use approximately $663 million dollars or almost three-quarters of the revenue surplus and distribute it to 5.1 million taxpayers. The refunds will not jeopardize commitments already made in the state budget for schools, salary increases, school construction and sewer/water infrastructure.
The justification for this bill is simple and straightforward.
North Carolina has a $900 million revenue surplus. That means actual tax revenues exceed the predicted collection totals.
As Sen. Phil Berger explained when he introduced the legislation, “Tax revenues don’t belong to the government, they belong to the people who earned it.”
It’s the fifth consecutive year North Carolina has run a revenue surplus.
In addition to tax refunds, a 2016 law requires that 15 percent of new budget savings go directly into the “rainy day fund.” That equates to a contribution of about $135 million to the savings reserve. The recent hurricanes and flooding proved the value of putting away such funds.
Because HB 74 cements our commitment toward limited government and underscores the truth that funding derives – not from the government – but from the people, Civitas Action believes a vote for HB 74 is a vote for freedom
Civitas Action will grade any votes on this legislation in the House or Senate.
Civitas Action is a 501(c)(4) non-profit that educates and informs North Carolinians on policy issues and the actions of their elected officials.