Working Families Pay More Under Right-Wing Tax Shift
Politicians in Raleigh received praise from the far-right Tax Foundation group for drastically cutting income taxes for the wealthy and big corporations in our state. This forced them to raise taxes on working families by expanding the sales tax, hiking fees and eliminating key deductions.
But North Carolina still ranks 33rd in sales taxes, despite the state's move into taxing services as well as retail and food purchases. The foundation's solution is simple - tax even more services.
Legislators didn't invite any opposing viewpoints. It's clear that the architects of state tax policy want to more aggressively cut corporate and personal income taxes.
If the lawmakers had invited tax experts with differing views, they might have considered the impact that a shift to broader sales taxes has on the poor, who spend a larger percentage of their incomes on basic goods and services. It's the same problem that plagues proposals for a "flat tax." Wealthier people who don't need all of their income for living expenses pay a far smaller share of their earnings in taxes. The shift away from income taxes and toward consumption taxes is one of the driving forces behind the growing gap between rich and poor in the U.S.