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Lawmakers Consider Tax Break for Troops

Posted March 21, 2007

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— Active-duty troops would be relieved of paying state income tax under a measure being considered in the General Assembly, but some lawmakers question whether the state can afford the tax break.

North Carolina, which has the third-largest military population in the country, is one of at least 24 states to tax the military pay of active-duty personnel. House Bill 184 would exempt active-duty troops from paying state income tax.

State income tax rates range from 6 to 8 percent, and eliminating the tax for troops could save a staff sergeant, for example, about $1,400 a year.

"I think that's an awesome idea. Soldiers aren't stationary for very long. We go state to state," said Staff Sgt. Felicia Brown, who said she pays income tax to her home state of South Carolina in every paycheck.

Spc. John Fisher claims residence in Texas, a state with no income tax for anyone, but he said the bill likely wouldn't affect many troops in North Carolina.

"So many people in the military are from so many other states. They either pay income tax to their home-of-record state, or they don't," Fisher said.

Sponsors of the bill said they don't yet know how much the proposal would cost the state, and some lawmakers urged caution, saying the loss of troops' tax revenue could hurt some state services.

"It's important to recognize that every break, every tax break, constitutes something in terms of other programs not available to the citizens of North Carolina," said state Rep. Paul Luebke, D-Durham.

State Rep. Grier Martin, D-Wake, has introduced two other bills designed to benefit troops. One would protect service members and their families from predatory lending practices, while the other would fund a consumer protection specialist to help military families manage their finances.

37 Comments

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  • 6 Mar 26, 2007

    Give them the tax break and CUT WELFARE

  • Xscout577 Mar 25, 2007

    Give them the tax break .. Gon knows, they've earned it!!( ok, so I screwed it up! hehe)

  • Xscout577 Mar 25, 2007

    GIVE THEM THE TAX BREAK ... GOD KNOWS, THEY"VE EARNED I!

  • Juliett Mar 22, 2007

    Give them the tax break. Our men and women that are serving their country deserve any break they can get. I agree with the suggestions made to make up the difference, cut welfare programs and cut rich politicians salaries and expenditures.

  • me-in-raeford Mar 22, 2007

    If the only reason NC Lawmakers have for not passing this bill is that they are worried about losing the tax money...here's an idea that would probably save as much tax money as you'd lose

    STOP paying any and all portions of the hospital bills for Illegal/criminal migrants having children...or for that matter any medical expenses for ILLEGAL/CRIMINALS!
    I figure, it probably cost at least $1,400.00 a pop and since they are the faster growing demographic I figure there is probably just as many hospital bills paid for ILLEGALS as there are service men and women from our state...
    JUST AN IDEA

  • Tarheeljunior Mar 22, 2007

    This is the first article about something realted to politic where the people posting seem to be unanimous. If the support among the people is any indication, this bill should pass fairly easily. I hope it does. They all deserve this and so much more.

  • ArmyMom Mar 22, 2007

    If state government would stop giving millions of dollars worth of tax breaks to big businesses as incentive to build/relocate in NC, then they wouldn't have to worry about losing $1400 per servicemember each year.

  • ketwine Mar 22, 2007

    no in this bill he (Luebke) is against. So if you are from Durham and want to him his number is: 919-733-7663... Just like most Demo. they said they are for the soliders but, they are not.. just a lot of lip service..ken twine

  • IHave1-2 Mar 22, 2007

    Pass it! Matter of fact, let's reduce the taxes for all NC folk. The more we pay, the more bankrupt we are. Get some folks in office who can spend money wisely while considering so many bills to pass on to hard working people and the soldiers who keep us safe.

  • b-man Mar 22, 2007

    Yes, give them a break!!! We only ask them to defend our country,and pay them just enough for the family to survive. The military, the police,and our teachers should be some of the highest paid people. We ask them to defend us, protect us and educate our children. But only pay them enough to live from check to check.

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