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State Republicans propose eliminating personal & corporate income tax in exchange for higher sales tax | CLT Blog
By: Mark SardellaBy: Mark Sardella

State Republicans propose eliminating personal & corporate income tax in exchange for higher sales tax

Posted on 16 Jan 2013 by Justin Ruckman

Read more by John Frank at the Charlotte Observer.

RALEIGH 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.

Senate leader Phil Berger said the moves are necessary to modernize the state’s tax code and kick-start a struggling economy. He pointed to the state’s tax rates, saying the current 6.9 percent corporate tax rate and 7.75 percent personal tax rate for the highest earners are among the highest in the region.

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.”

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