View mobile site
Follow us on
Wednesday, May 22, 2013 | 6:14 p.m.
Hi, (not you?) | Member Center | Sign Out
Sign In | Register
Posted: 4:31 p.m. Friday, Dec. 14, 2012
By Scott Wickersham
CHARLOTTE, N.C. —
Now that Republicans control the legislature and governor's mansion in North Carolina, there is more discussion about changing the state tax code. One plan is to eliminate the income tax North Carolina takes out of paychecks and expand the sales tax to cover more things people buy every day. It's one idea lawmakers will take a serious look at when they return to the capital in January. "Income tax is detrimental to economic growth, investment and job creation," said Republican state Sen. Bob Rucho from Mecklenburg County. Rucho said the idea of eliminating the state income tax is one he and his colleagues would consider to make North Carolina competitive and business-friendly again. "The system has failed. It's no longer an option, and we need to find an alternative to it," he said. The state would no longer take a tax out of residents' paychecks but in turn would put sales tax on services like those provided by doctors, lawyers and car repairs. It could also raise the sales tax on things like food, which is now capped at a lower rate. Economist John Connaughton said there is plenty of revenue to go after. "There are certain segments of the economy where we pay reduced tax, and the rest, probably 70 percent of it, that are in the service area," Connaughton said. Gov.-elect Pat McCrory has vowed to support tax reform, so the legislature would have an ally. Is there a real chance this could happen? Brian Balfour of Raleigh think-tank Civitas said only one state has pulled it off. "The lone exception would be Alaska. They did it in 1980 on the back of a huge pipeline. They had a lot of royalty revenue coming in from that," Balfour said.
5 Day Forecast
Early Warning Doppler 9
Local Radar Loop
Regional Radar Loop
© 2013 Cox Media Group. By using this website,
Already have an account? Sign In
We have sent you a confirmation email. Please check your email and click on the link to activate your account.
We look forward to seeing you frequently. Visit us and sign in to update your profile, receive the latest news and keep up to date with mobile alerts.
Don't worry, it happens. We'll send you a link to create a new password.
We have sent you an email with a link to change your password.
We've sent an email with instructions to create a new password. Your existing password has not been changed.
To sign in you must verify your email address. Fill out the form below and we'll send you an email to verify.
Check your email for a link to verify your email address.