'An NC tax plan that’s an exercise in villainy'

4 Comment(s) | Posted

The Governor and the General Assembly have lowered the state's income tax rate once again, but have subsequently levied new sales taxes on services. Sales taxes are known for being regressive, charging a larger percent of a person's income the lower they reside on the socio-economic scale. These new taxes clearly benefit only the rich and big corporations.

 Read more at the News & Observer

The governor and the General Assembly just lowered, yet again, the state’s income tax rate. To help pay for it, they enacted a new sales tax on car and appliance repairs. The move continues an apparently defining project of shifting the tax burden from the wealthiest North Carolinians to the poorest.

Sales taxes are famously regressive. Low-income citizens are forced to pay notably larger percentages of their scarce dollars, compared with their better-off colleagues, to meet the necessities of life. And in this trade, their tiny income tax breaks (typically well under $50) will likely be swamped by hefty increases in unavoidable repair bills. The N.C. Justice Center reports the legislative changes will increase the tax burden for poor Tar Heels and significantly reduce the tab for those at the top.

Republican leaders explained, oddly, that the new sales tax was not an “increase” because it would be offset by the income tax reduction. So now low-income Tar Heels suffer no tax increase as long as wealthy ones get a tax cut that is larger than the poor folks’ penalty. We rarely see such straightforward declaration that poor people don’t count. It is the same theory that, a session ago, led the members of the General Assembly to eliminate the earned income tax credit while proclaiming they would never raise taxes. Poor folks aren’t part of the polity.

And extending the sales tax to some services, but not others, is a particularly useful tool for politicians out to crush those at the bottom. Wealthy people have new cars and warranties. Economically strapped North Carolinians struggle mightily to keep an automobile on the road. Paying for repairs is not a choice. No attempt was made, of course, to tax fees for the services of lawyers, accountants, architects, psychotherapists and interior designers – benefits reserved for those at the top.


Read more here: http://www.newsobserver.com/opinion/op-ed/article36473067.html#storylink=cpy

 


Read more here: http://www.newsobserver.com/opinion/op-ed/article36473067.html#storylink=cpy

Read more here: http://www.newsobserver.com/opinion/op-ed/article36473067.html#storylink=cpy

Comments

  1. Janice's avatar
    Janice
    | Permalink
    We NEED TO STAND TOGETHER TO STOP THIS.
  2. Janice's avatar
    Janice
    | Permalink
    We NEED TO STAND TOGETHER TO STOP THIS.
  3. john morrissett's avatar
    john morrissett
    | Permalink
    Most psychotherapists are not at the top of the food chain
  4. Greg Hamby's avatar
    Greg Hamby
    | Permalink
    Just another example of trickled on economics..which is a proven failure....
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