This is Mary Walden with economist MW, welcoming you to the economic perspective. Today’s program looks at North Carolina’s wealth tax. Mike, there’s some discussion of instituting a type of a wealth tax on some households in the country. I’ve heard that North Carolina already has a version of a wealth tax. Please explain.
- First, a wealth tax is different than an income tax
- Income tax is tax on annual earnings, mostly from salaries and wages
- Wealth is net savings – value of savings (or investments) minus value of debt
- NC and some other states have a tax on the wealth of some businesses
- It is a base value and then a rate for higher amounts and some caps
- Different than most national proposals, which would be assessed on individuals
- Still, means the debates pro and con about a wealth tax have relevance at the state level in NC
- I’m MW
Mary: And I’m Mary Walden for the Economic Perspective, an NC State Extension program from the Department of Agricultural and Resource Economics.