Posted on 09/04/2013 5:26:26 PM PDT by NCjim
At the moment, seven states across the country don’t levy a tax on income, and North Carolina Republicans want to make it eight, according to a powerful member of the state legislature.
State Sen. Bob Rucho, a Mecklenburg County Republican and chairman of the Senate Finance Committee, said Wednesday that he hoped to use the 2015 legislative session to eliminate the state income tax, replacing it with a consumption-based sales tax to make up for the lost revenue.
“That’s a direction we’d like to go,” Rucho said in an interview as the state Senate adjourned for the year. Rucho said it was impractical to push for such a steep cut during a short session the legislature holds in even-numbered years, but that cutting the income tax was a top priority of his when the legislature reconvenes for its biennial full session.
North Carolina’s income tax accounts for about 61 percent of state revenue, Rucho said. But the revenue stream has been choppy in recent years, given the impact of the recession. The uneven results on a year-over-year basis can play havoc with annual budget planning in a state that requires a balanced budget, and it’s something Rucho said he wanted to avoid.
“We want to get away from that and go to a more flat consumption-based tax on sales taxes, both goods and services, and in return, we’ll say, ‘We’ll go to zero with the income tax.’ And that’s something we think we can achieve. It just takes time to get there,” he said.
(Excerpt) Read more at washingtonpost.com ...
Michigan
House Bill 4898: Repeal state income tax
Introduced by Rep. Robert Genetski (R) on July 18, 2013, to repeal the state income tax, if voters approve. This bill would place the repeal on the ballot as a legislative initiative on the November 2014 general election.
http://www.michiganvotes.org/Legislation.aspx?ID=160380
What makes him think a consumption based tax isn’t going to vary like an income tax, especially if a baseline of purchases is exempted, as is often suggested? At least it would become a first-order variation, rather than somewhat exponential like a “progressive” income tax, I guess.
sounds great
but look for the left - NAACP, teachers, the carpetbag yankees, etc. - going on a full court press to remove our heroes from the legislature each November. They have already started with Moral Mondays, letters to the editors, constant crying in the media, and more.
They need to sell this some more. I like it, but lot of mis info out there (most of it on purpose).
There is something any state could do that would be a huge boon to prosperity. Under limited conditions, abolish the property tax.
That is, if you owned property, and had your primary residence on that land, up to a certain amount of land, and lived in that primary residence for six months and a day minimum each year, did not rent your property or the use of your land, there would be no property tax on your property.
This would mean that a single family home owned by that family would be property tax free.
And two other things could enormously sweeten the deal. That there was no state inheritance land on that property, and (as in Florida), that land and home could not be taken in bankruptcy proceedings.
This would mean a land rush to build and purchase single family homes on a plot of land, likely in cash. And that sale *would* be taxed at the normal rate.
If North Carolina did this, they would likely become one of the top markets in the US.
We are going to do this. It is all in the works. They are trying to roll it out slowly, so as not to freak people out.
This is a good conservative source: http://www.nccivitas.org/2013/n-c-senate-responds-with-bold-tax-plan-eliminates-major-growth-obstacle/
This is actually not good news. Income is down, so income tax is down. But NC still wants their cut. Did you think one downside to being broke or being retired was no income tax to pay? Surprise! Now you get to pay anyway every time you go to the store.
one *less* downside
Good. NC finding the TN model is correct.
Retirees do not pay the way for NC. If your broke, get a job.
It sounds great. However, in North Carolina, it is the counties and municipalities that assess real estate and personal property for taxation. The state doesn’t get a dime. Now I am a huge proponent of the elimination of income taxes and would love to see the removal of property taxes. So the state legislature would have to devise a bill that would shift almost all of the taxes statewide to a consumption or sales tax system.
It sounds great. However, in North Carolina, it is the counties and municipalities that assess real estate and personal property for taxation. The state doesn’t get a dime. Now I am a huge proponent of the elimination of income taxes and would love to see the removal of property taxes. So the state legislature would have to devise a bill that would shift almost all of the taxes statewide to a consumption or sales tax system.
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