Jump to content





Photo
* * * * - 1 votes

North Carolina goes to a flat tax, other tax reforms too


This topic has been archived. This means that you cannot reply to this topic.
97 replies to this topic

#91 NanuqoftheNorth

NanuqoftheNorth

    Frosty Alaskan Amber

  • Joined: 09-November 09
  • PipPipPipPipPipPipPipPipPip
  • posts: 5,569
  • Reputation: 2,114
HUDDLER

Posted 16 July 2013 - 10:22 AM

And which of those is more relevant to ROI for governmental expenditures?

 

I think yours are definitely more relevant, but that does not make my information wrong.



#92 Niner National

Niner National

    Senior Member

  • Joined: 24-November 08
  • PipPipPipPipPipPipPipPipPip
  • posts: 3,603
  • Reputation: 505
HUDDLER

Posted 16 July 2013 - 10:23 AM

And which of those is more relevant to ROI for governmental expenditures?

Neither.

 

According to that list SC has better roads than NC. What has that done for them? They're one of the poorest states in the country. Good roads aren't going to make a company locate to an area with low intellectual capital.

 

In fact, almost all of the states in the top 20 are among the poorest and least educated states in the country.

 

Texas, Georgia, Virginia, and NC are the only states in the top 20 that have highly advanced and diversified economies.



#93 g5jamz

g5jamz

    Is back

  • Joined: 17-March 09
  • PipPipPipPipPipPipPipPipPip
  • posts: 19,244
  • Reputation: 477
HUDDLER

Posted 16 July 2013 - 10:32 AM

http://taxfoundation...e-tax-agreement

 



#94 NanuqoftheNorth

NanuqoftheNorth

    Frosty Alaskan Amber

  • Joined: 09-November 09
  • PipPipPipPipPipPipPipPipPip
  • posts: 5,569
  • Reputation: 2,114
HUDDLER

Posted 16 July 2013 - 12:01 PM

RALEIGH, N.C. — Details of the proposed tax overhaul agreement announced Monday by legislative leaders and Gov. Pat McCrory on Monday. The General Assembly is expected to vote on the deal later this week:

INDIVIDUAL INCOME TAX:

— Eliminate the current three-bracket rates of 6, 7 and 7.75 percent with one bracket with a 5.8 percent rate in 2014 and 5.75 percent in 2015.

— Eliminate personal exemptions, but increase standard deduction — currently ranging from $3,000 to $6,000 depending of filing status — from $7,500 to $15,000.

— Eliminate $4,000 deduction on government retirement income and $2,000 private retirement income.

— Allow the greater of the standard deduction or itemized deductions equal to mortgage interest and property taxes capped at $20,000, plus all charitable contributions allowed by federal tax law.

— Raise child tax credit from $100 per child to $125 for tax filers with adjusted gross income below $40,000. The $100 credit would still be eliminated for people with high incomes.

— Eliminate in 2014 a $50,000 deduction on certain business-related income approved in 2011.

CORPORATE INCOME TAX:

— Reduce current rate of 6.9 percent to 6 percent in 2014 and 5 percent in 2015. It could fall to 4 percent in 2016 and 3 percent in 2017 if revenue growth targets are met.

SALES TAX:

Effective Jan. 1, 2014:

— Expand to include service contracts.

— Tax manufactured homes (2 percent or $300 maximum) and modular homes (2.5 percent) at full 4.75 percent state sales tax rate.

— Repeal exemptions for nutritional supplements sold by chiropractors and certain newspaper sales.

Effective July 1, 2014:

— Repeal current 3 percent franchise tax on electricity sales, replacing it with 7 percent combined state and local sales tax rate.

— Make piped natural gas subject to combined rate of 7 percent, end excise tax.

— Repeal sales tax holiday weekend in August and Energy Star appliance sales tax holiday weekend in November.

— Cap sales tax refunds for individual nonprofit hospitals, universities and other charities to $45 million annually.

OTHER TAXES:

— Extend tax credits for research and development, professional motorsports teams and aviation fuel for the teams and passenger air carriers until 2016. Other tax credits would expire as scheduled over time. The film production tax credit, for example, would expire in 2015.

— Repeal estate tax.

— The state motor fuels, or gasoline tax, would be capped at 37.5 cents per gallon through June 30, 2015.

REVENUE:

The plan is projected to result in $86.6 million less in state revenues during the 2013-14 fiscal year and $437.8 million less in 2014-15 compared to revenue levels if no tax changes were made. The amount extends to more than $600 million annually through mid-2018. Local governments combined would receive $14.6 million in additional revenue in 2013-14 and $36.2 million in 2014-15.

WHAT'S NOT CHANGED:

— Social Security income won't be taxed differently.

— Other services transactions, such as lawn services, automobile repairs, alterations and many business transactions will continue to be exempt from the sales tax.

— The combined sales and local sales tax that consumers pay in most counties remains 6.75 percent.

 

http://www.wral.com/...ement/12666057/

 

 

 

 



#95 Niner National

Niner National

    Senior Member

  • Joined: 24-November 08
  • PipPipPipPipPipPipPipPipPip
  • posts: 3,603
  • Reputation: 505
HUDDLER

Posted 16 July 2013 - 12:13 PM

Unless I'm reading it wrong, sounds like electricity bills will be going up.

 

Where will that $437.8 million be made up? That is no small chunk of change. That's a lot of money to remove from the state economy in a very short period of time.



#96 teeray

teeray

    THE SWAGNIFICENT

  • Joined: 10-January 11
  • posts: 17,700
  • Reputation: 9,517
SUPPORTER

Posted 16 July 2013 - 12:13 PM

Has anyone seen or heard how they intend to offset 600 million dollars a year in lost revenue?

 

 

I do have one idea.  Allow the expansion of Medicaid that the budget office estimated would result in 500 million dollars in new revenue and 23,000 new jobs in NC alone.

 

Oh but that is a part of Obamacare.  Can't do that.



#97 teeray

teeray

    THE SWAGNIFICENT

  • Joined: 10-January 11
  • posts: 17,700
  • Reputation: 9,517
SUPPORTER

Posted 16 July 2013 - 12:18 PM

Unless I'm reading it wrong, sounds like electricity bills will be going up.

 

Where will that $437.8 million be made up? That is no small chunk of change. That's a lot of money to remove from the state economy in a very short period of time.

 

It won't be removed from the economy it will be removed from state revenue.  400 million will stay away from the government which should make Repubs happy.  But there is a concern on how they are going to account for that.

 

My guess is they will do nothing about, in 2 years when these deficits skyrocket they will use it for public leverage to try and make huge cuts to more programs.



#98 Niner National

Niner National

    Senior Member

  • Joined: 24-November 08
  • PipPipPipPipPipPipPipPipPip
  • posts: 3,603
  • Reputation: 505
HUDDLER

Posted 16 July 2013 - 01:03 PM

It won't be removed from the economy it will be removed from state revenue.  400 million will stay away from the government which should make Repubs happy.  But there is a concern on how they are going to account for that.

 

My guess is they will do nothing about, in 2 years when these deficits skyrocket they will use it for public leverage to try and make huge cuts to more programs.

While true, that money is typically going to be spent by the state government on some sort of product or service. I just fear that stripping that much out in a single year could have serious negative consequences.

 

Maybe there won't be any, I would have rather just seen it be phased in over a 2-3 year period rather than something so abrupt.