The NC governor wants a state tax-exempt loan write-off
RALEIGH, NC (AP) — North Carolina Gov. Roy Cooper wants the General Assembly to pass legislation exempting individuals from state income taxes on the student loan waiver announced by President Joe Biden last month.
The White House has said the value of that forgiveness — as much as $20,000 for some — is exempt from federal income tax, citing language in America’s 2021 bailout law. But North Carolina appears to be one in a half-dozen being states where amounts would remain subject to state tax.
The Democratic governor noted that the General Assembly passed legislation in 2021 that exempted loans from the corporate paycheck protection program from state income taxes and allowed recipients to deduct expenses paid with those loans.
“Republican lawmakers were quick to bail out corporations and should now right this fundamental injustice for many hard-working people who are being hit hard,” Cooper said in a press release Wednesday. North Carolina’s individual income tax rate of 4.99% will drop to 4.75% in 2023.
The main working period of the General Assembly for the year ended July 1st. Since then, lawmakers have held monthly three-day administrative meetings. The next meeting of this kind is next week. The legislature has the power to discuss substantive legislation during these sessions.
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