The move is by the Republican-controlled legislature and N.C.’s GOP leadership hopes to capitalize on its majority in order to push through the proposal to abolish taxes.
Republican North Carolina state Sen. Bob Rucho is leading the charge to reform the state’s tax system, which he calls outdated and blames for dragging the economy down. He believes scrapping the state’s 7.75 percent personal income tax and the 6.9 percent corporate income tax would spur economic growth and create jobs.
…State personal and corporate income taxes currently provide about 60 percent of North Carolina’s operating revenue. If these taxes were eliminated, the lost revenue would be replaced by increasing and expanding the sales tax.
North Carolina joins three other states — each controlled by Republicans — that are looking to get rid of the state income tax. Louisiana, Nebraska and Kansas are each either studying the feasibility of such a move or are already making plans to do so.
In citing successful models, the states point to Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming as states with no personal income taxes. Nevada, South Dakota and Wyoming also have no corporate income tax.
The opinions contained in this column are solely those of the writer.
Want to share your own views on money and politics? Drop us a line at firstname.lastname@example.org and we might reprint your views in our InvestorPolitics blog! Please include your name, city and state of residence. All letters submitted to this address will be considered for publication.