North Carolina's Capital Gains Tax

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North Carolina's Capital Gains Tax

Published: Tuesday, September 16th, 2014 @ 9:40 pm
By: John Locke Foundation ( More Entries )

Publisher's note: The author of this post is Dr. Roy Cordato, who is Vice President for Research and resident scholar at the John Locke Foundation.

It's time to consider a change

    In 2013 North Carolina instituted sweeping tax reform and began the process of making its tax system more efficient and more consistent with liberty.

    There are important areas of the tax code that still need to be reformed, and the treatment of capital gains is one of those areas.

    Capital gains taxes penalize saving, investment, and therefore entrepreneurship.

    They do this by imposing a second layer of taxation on equity investment.

    The most straightforward way to end this bias is to eliminate the tax on capital gains completely.

    If abolition of the capital gains tax is considered to be too difficult a task politically, then North Carolina could take the same approach as the federal government and tax capital gains at a lower rate than ordinary income.

    Another approach would be to follow the lead of some other states. For example, South Carolina allows taxpayers to reduce their capital gains by 44 percent before applying the tax, while Wisconsin allows for an exclusion of 30 percent.

    View the full PDF article here.

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Gene Scarborough said:

( September 17th, 2014 @ 9:34 am )

Your theory on Capital Gains Taxes sounds good to the investor --- it sucks for the worker who will never have the ability to invest. The gulf between rich and poor in America is widening and the elimination of this tax is another nail in the coffin of the working segment of the US.

The VooDoo of Reaganomics has had enough years to prove what a failure it is. Nothing has "trickled down" since its inception. Plenty has "trickled out" as the rich corps an individuals has built overseas and banked there as well --- all looking for a tax advantage. Meanwhile, the US infrastructure and banks are collapsing from lack of care and renewal. Our banks have little to lend and the collateral requirements slam the door in the face of average earners.

I cite, but one example of Capital Gains inequity ~~~ Mitt Romney. His business is stocks and buyouts. He paid 14% tax on millions made killing jobs and businesses in the year before he disclosed his finances to run for President.

He is already paying only 14% when the average citizen pays around 25% on average! You may want to cite his "charitable giving" as one of his pluses. I cite the jobs lost and taxes paid by workers in this country struggling to just find work these days.

VooDoo is HooDoo ~~~ the last 30 years of rich/poor separation proves it!!!