The Economic Perspective: “North Carolina’s Wealth Tax”

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.