They can exclaim whatever talking point they want, but in any tax reform debate it’s easy to see that Democrats hate The Government getting less money and citizens keeping more of what they earn
(WRAL) Lawmakers and Gov. Pat McCrory struck a deal on tax reform Monday, ending a weeks-long impasse over how to rewrite a tax code that hasn’t been significantly overhauled since the 1930s. (snip)
The package will reduce both personal and corporate income taxes. It also eliminates the estate tax and preserves the ability of most nonprofits to get refunds of what they pay in sales taxes.
According to an analysis by the legislature’s nonpartisan staff, taxpayers at both ends of the income spectrum will pay less. For example, a married couple filing jointly with two children who make $40,000 a year will pay $80 less under this tax plan. The same couple filing jointly with two children who make $250,000 will pay $2,434 less.
The measure replaces the three-tier personal income tax system with a flat tax of 5.8 percent in 2014, which drops to 5.75 percent in subsequent years. Standard deductions increase to $7,500 for single filers, $12,000 for heads of households and $15,000 for married couples.
Corporations will also see their tax rate drop down, and the NC gas tax, one of the highest in the nation, will be capped till June 30,2015. Two tax free holidays will be eliminated. This will supposedly raise $500 million less through income tax. And that’s where Dems go off the rails
“It is very likely that as a result of this failure to pursue real, comprehensive tax reform, state sales taxes and local property taxes will go up in the future,” Alexandra Forter Sirota, director of the liberal N.C. Budget & Tax Center, said in a statement. “That’s what happened in every other Southern state that has personal and corporate income taxes that can’t keep up with growing public needs.”
For liberals, raising taxes is considered comprehensive tax reform, and they think it is a Bad Idea for people to have more of their own money.
Sen. Mike Woodard, D-Durham, also criticized the proposal for its cuts to state spending in coming years.
“What happens is, if this is not revenue neutral, our citizens lose,” Woodard said. “The services we provide – education, health care – these are going to suffer under this tax proposal.”
What they don’t note is that when people have more of their own money, they tend to spend it. It flows through the economy, which means jobs are created and more people earn an income, which means in the real world more money flows into the local and state treasuries.
There’s also the notion that government should spend the people’s money wisely, instead of using the taxpayers as piggy banks and unlimited slush funds to push their own pet projects. Of course, that’s a problem for both parties. Democrats just happen to be worse. And they sure hate the notion of citizens keeping more of their own money.
Nice. NC has for years had much higher taxes than most of the south. Now that your lawmakers are getting things in order, please send a few of them over to LA to drop our income tax. Thanks in advance.
You might want to start by electing conservative republicans. that usually helps more than it hurts.
I too find it interesting that you will be eliminating the estate tax and placing a flat tax in play. wow. congrats on that.
Let’s hope other states follow suit, which then leads to a movement in the Congress.