House committee hears bill that would eliminate state income tax for 60% of North Dakotans

(Fargo, ND) -- North Dakota State Representative Craig Headland is pushing his bill which would establish a flat tax on state income for higher earners, and eliminate income tax altogether for lower income residents. 

"We have excess dollars we've collected and the first thing that we should do is prioritize those dollars and find a mechanism to share that excess revenue with the taxpayers," said Headland, who serves as chairman of the House Finance and Taxation Committee. 

Headland's bill was heard Wednesday by that committee. If approved, the bill would eliminate personal income tax for single filers making $44,725 dollars or less, and for married filers whose annual income is $74,750 or less. People making more would pay a flat tax of 1.5%. Governor Burgum says the plan would save North Dakotans $250 million a year. 

Headland says three-fifths of taxpayers would have no state income tax liability under the bill, and says a flat tax would help improve the state's labor shortage.

"We're struggling for workers here in the state of North Dakota and there are people that are looking to move out of the high tax states. Taxes are a way that states incentivize people to take a look at them," said Headland.

The republican state representative appeared on "What's on Your Mind" on AM 110 The Flag. 
 

Original Air Date: 
Thursday, January 12, 2023