NC Sales and Services Taxation: Into the Capillaries

Now the Republicans in North Carolina are backing away from radical sales tax base-broadening that would tax all goods and nearly all services.   But they want some change.

Soon it will be time for them to list which services get taxed for the first time.  So service businesses from tattoo parlors to CPAs will have incentives to (1) hire lobbyists and (2) make campaign contributions to incumbents.

Replace NC Income Tax with Sales and Services Taxes? – The Civitas/Laffer List

UPDATE March 1, 2016:

This link (http://www.dornc.com) goes to the Department of Revenue site, with lots of info about new sales and use tax rules that are now law.

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Here is specific info about recent changes, including those taking place March 1, 2016: http://www.dornc.com/taxes/sales/impnotice0222_march1changes.pdf.  And here is more, dated February 11, 2016: http://www.dornc.com/taxes/sales/noticeofitemspublished16.pdf

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Original post:  Taxing dentists but not doctors?  Here is  a list of changes to the North Carolina sales and services tax base proposed by a Civitas/Laffer study.  Continue reading “Replace NC Income Tax with Sales and Services Taxes? – The Civitas/Laffer List”

Economics of Bootlegging in the 1950s — Junior Johnson

“A gallon of whiskey [bore] … $11 tax.  You could make it for 75 cents to a dollar and sell it for $3 or $4. . . .  It’s the same way today if you beat the government out of taxes.  It’s what everyone was trying to do back then.”  Junior Johnson, quoted in Peter Golenbock, American Zoom (MacMillan, New York, 1993), page 22.

The federal liquor tax from 1951 to 1985 was $10.50 per proof gallon.  It’s $13.50 today, but with inflation, the tax burden is much less now.

Whisky Rebellion of the 1790s — Petition and Remonstrance

Tax protesting is nothing new, as seen here:  Petition-and-remonstrance.  To complain about the whisky excise tax in the early 1790s, an anonymous North Carolina planter wrote hundreds of lines in verse.  Here’s a sample transcription from Scottish dialect:

Some chaps whom freedom’s spirit warms

Are threatening to take up arms,

And headstrong in rebellion rise

‘Fore they’ll submit to that excise. Continue reading “Whisky Rebellion of the 1790s — Petition and Remonstrance”