North Carolina, Other States Look to Abolish Taxes

by Burke Speaker | September 5, 2013 10:01 am

NewLetters North Carolina, Other States Look to Abolish Taxes[1]North Carolina lawmakers are joining three other states in a push to eliminate the state income tax.

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.

From Fox News:[2]

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 Bob Rucho is leading the charge to reform the state’s tax system, which he calls outdated and blames for dragging the economy down.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[3]. 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[4]. Nevada, South Dakota and Wyoming also have no corporate income tax.

The opinions contained in this column are solely those of the writer.

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Endnotes:
  1. [Image]: mailto:letters@investorplace.com
  2. From Fox News:: http://www.foxnews.com/politics/2013/02/26/nc-lawmakers-push-to-eliminate-state-income-tax/
  3. get rid of the state income tax: http://www.cato.org/publications/commentary/abolish-state-income-taxes
  4. states with no personal income taxes: http://www.irs.gov/uac/States-Without-a-State-Income-Tax

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