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nc republicans propose poo policy, as is tradition

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http://www.charlotteobserver.com/2013/01/16/3792608/gop-leaders-suggest-abolishing.html

Republican lawmakers outlined a proposal Wednesday to revamp the state’s tax system, offering a slew of reforms that would radically shift the tax burden in North Carolina.

The proposal would eliminate personal and corporate income taxes in exchange for higher state sales taxes levied against groceries, medical expenses and other currently tax-free services.

Read more here: http://www.charlotteobserver.com/2013/01/16/3792608/gop-leaders-suggest-abolishing.html#storylink=cpy

“It is important for us in terms of our competitive posture with other states,” the Republican from Eden told reporters. “It is important for us in terms of making sure there is a fair allocation of the cost of government.”

But critics caution that the proposals represent a fundamental change in who pays the state’s tax burden, and economists said that low-income people would feel the brunt. “For this particular proposal, the responsibility would shift from rich households and prosperous corporations to poor households and smaller businesses,” Dave Ribar, a professor at UNC Greensboro, concluded in his analysis of the proposal.

Read more here: http://www.charlotteobserver.com/2013/01/16/3792608/gop-leaders-suggest-abolishing.html#storylink=cpy

But restructuring the tax system is a not-so-simple math problem that will force Republicans to raise taxes and fees on economic activities that people engage in every day. It would also involve eliminating well-established tax exemptions for special interest groups.

It costs roughly $12 billion to eliminate the corporate and personal income taxes and business franchise taxes, as the GOP proposes. The money accounts for more than half the state’s $20 billion annual budget.

Read more here: http://www.charlotteobserver.com/2013/01/16/3792608/gop-leaders-suggest-abolishing.html#storylink=cpy

Which taxes would go up?

To eliminate the corporate and personal income taxes, leading Senate Republicans are proposing to increase other taxes to make up the $12 billion in lost revenue. A breakdown:

Sales tax: The sales tax in most of the state (state and local combined) is 6.75 percent. Under the proposal, the rate would increase to 8.05 percent. Mecklenburg’s existing sales tax is half a penny higher.

Grocery tax: The grocery tax is currently 2 percent, a levy from local governments. (There is no state grocery tax.) The proposal would quadruple the tax to 8.05 percent in most areas.

Business tax: The proposal would eliminate business franchise taxes but charge a new 1.05 percent tax to all businesses, tied to either net worth or gross receipts. The minimum “license fee” would be $500.

Real estate tax: All real estate transactions would be taxed at 1 percent, an increase from the current 0.2 percent rate, based on a property’s value.

Read more here: http://www.charlotteobserver.com/2013/01/16/3792608/gop-leaders-suggest-abolishing.html#storylink=cpy

in other words, "fug you poors"

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Posted

It's like a assbackwards version of the Fair Tax.

I can handle the removal of income tax for a consumption tax, but you have to exclude necessities.

The removal of the Corporate Income Tax flat stinks and smells of "I won so now my donors win".

I hate to say it, but me and Godspin p much agree here.

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i've said it before and I'll say it again," Pols should have to wear thier contributors logos like a patch on thier suits the same as nascar drivers, so that when they speak we know who we're listening to." Consumption taxes give incentives to get a job. i like that

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Posted

One of the things I like most about Texas, is the lack of a state income tax... It'll have to be explained to me a bit more how this sticks it to the poor... Unless rich people don't buy groceries or go shopping...

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One of the things I like most about Texas, is the lack of a state income tax... It'll have to be explained to me a bit more how this sticks it to the poor... Unless rich people don't buy groceries or go shopping...

probably because poor people spend proportionally more of their income on groceries, meaning that they are being taxed proportionally more than rich people.

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Posted

man... f*ck that. that's awful.

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One of the things I like most about Texas, is the lack of a state income tax... It'll have to be explained to me a bit more how this sticks it to the poor... Unless rich people don't buy groceries or go shopping...

I'll let you figure this one out on your own.

How would a tax on groceries (something everyone buys) be more of a burden on poor people

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Posted

I don't like this. You'd have to come up with some new program like WIC for low income families to afford groceries. Not fair to me.

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Posted

Fairtax.org :)

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Posted

Republicans for years have tried to remove the tax on food (unprepared). Is "groceries" specific enough?

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I'll let you figure this one out on your own.

How would a tax on groceries (something everyone buys) be more of a burden on poor people

Not sure exactly how this compares to what is in place out here... I haven't researched it all that close... When I moved out here, it was nice to take home more of my paycheck each week, and not to have to worry about state filings... I can agree that the upper tier may not be pulling enough weight when strictly looking at sales taxes and grocery taxes, but I don't know that I agree it's a burden turning a grocery bill that would've cost $102 into one that costs $108, particularly given that take home income increases... It's possible you and I simply have different definitions of what a burden is...

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Posted

I have no issue with this but agree that there should be more consumption tax on luxury items and less on basic food and necessities.

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