NC Senate leader wants lower income tax rates

GARY D. ROBERTSON
Associated Press

RALEIGH, NC (AP) -- North Carolina Senate leader Phil Berger says he thinks an overhaul of the state tax system will happen this year and he will try to make income tax rates as low as possible - maybe even zero.

The Eden Republican told reporters Wednesday that senators are considering a proposal to eliminate individual and corporate income taxes and shift to a consumption-based tax system that includes more services under the sales tax. Berger said the proposal also would make groceries subject to the sales tax again.

Berger says the final version will be worked out with the House and Gov. Pat McCrory. McCrory has said he wants at least income tax rates to drop to the rates of neighboring states.

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It's about time NC has come out of the stone age, now let's gid rid of the burden of NS State Inspections for cars, what a waste of time for he consumer, it's a proven fact they do nothing for safety, it's all about rvenue, this state doesn't have an income problem, it's had a spending problem, time to get it under control.

I have always been in favor of a consumption tax HOWEVER, the exclusions are the key to this. As I read the Fair Tax book I noticed that there were exceptions and I wondered why?
Of course some would say its to protect the rich boys toys as second homes and boats were not taxed but thats another argument I think.
The PROBLEM with consumption taxes is that when jobs are scarce people cut back even on groceries which would make revenue very uneven.
Funny how they're taking an idea that was proposed nationally and thinking its a panacea for NC ills.
So you cut unemployment and people can't spend money on taxable things as much.
Then you force them into low paying jobs and they can't spend money on taxable things.
I wonder if they'll tax medications?

Vog

if he can come up with a plan which eliminates income taxes; moderately introduces increased consumption taxes; and can pay all of the debt placed upon the state, he's a magician.

Oh and at the same time cut unemployment.

Does he think he is Ironman?

Another consideration -- if the consumption tax is high enough, how many North Carolinians, living within 90 minutes or so of the South Carolina line will find it worthwhile to make that drive and do their purchasing in SC?

He will pass tax reform
I'm not sure he'll be able to pay off all the debt
He will cut unemployment
Why? - because unemployment is falling as we speak. If he cuts off bennys UE will fall even more as people get off the rolls or are kicked off. This is the age old argument - do we count those that have given up or total unemployment?

As for consumption taxes - again what are the exemptions? I don't think there should be any. That results in an increased base of taxable goods. This results in a lower rate of taxation for all.

Vog

Great way to start of your era of destruction! More for food so you all can keep more of your money.

What nonsense. I ain't rich but I sure would like those people who make the cash and do not pay taxes to pay more. Their attitude is I keep in my pocket and you dummies pay the tax bill for me. You know nothing about rich only your envy shows through with comments like that. You should be trying like crazy to get rich rather than worrying about whether they do or don't!

I don't know if they are using the Neal Boortz - Sen. John Lender Fairtax plan as a template... but they should. The first knee jerk from anyone that is opposed to a fairtax is... "oh, the poor people will have to pay more in taxes now...". That is, simply put, wrong. There is a monthly rebate check sent to every family to counter any taxes that would be paid up to the poverty level. Translation, the poor people will NOT pay more for food.

Usually, the only people opposed to a fairtax system in place of an income tax system are people that don't pay taxes now, and the politicians who want to pander to them.

In all of the state proposals on consumption taxes you know whats missing? The Prebate ! Louisiana I don't believe is doing the monthly rebate. In listening to Tillis I don't believe he's mentioned a monthly rebate either.
The main thrust of tax reform is great - and if they can do it and eliminate the corporate tax at the same time it may boost NC's economy.

Just keep in mind what McCrory has said about IT and state buildings.
This is the same national political party that paid $222,000 for a bathroom renovation at the Dept of Interior during the Bush administration. Thats right, a single bathroom.
Each party has their own agenda.
I just hope that the state's agenda is not at the expense of the poor.

Vog

tinfoil doesn't go up much since you apparently use it regularly!!