Replace NC Income Tax with Sales and Services Taxes?

Two independent sources tell me that Republicans, who now control the North Carolina Legislature and will soon gain the Governorship, plan to tax all sales and services at a uniform rate.  Nine percent might allow them to repeal the personal and corporate income taxes.  Local taxes could push the total take past 10 percent.

To keep the rate at 9 percent, they would have to tax everything:  hospital bills, prescription drugs, business services like lawyers’, you name it.  Once they make exceptions, the rate has to go up to stay revenue neutral.

Simplicity only, fairness not at all.  We’ll see what happens.  The history of taxation leads me to think fairness won’t be shut out for long.

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Author: patoglesby

From 1982 to 1990, I worked in tax policy for Committees of the United States Congress. In recent years, I was Adjunct Lecturer at UNC-Chapel Hill's Business School and then Adjunct Professor at its Law School.

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