More To Do On Tax Reform: Changing How Business Expenses Are Deducted | Eastern North Carolina Now

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

 North Carolina's tax code penalizes savings and investment by double taxing their returns — specifically interest, dividends, and capital gains. These biases can only be eliminated by removing savings and investment from the tax base, or by eliminating the returns to saving; for example abolishing the taxation of capital gains. The goal should be what economists call "tax neutrality," which implies treating all business and consumption activities equally. Along with eliminating or reducing the state's capital gains tax, restructuring the way business deductions are taken should also be a high priority.

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Tax Reform In North Carolina: John Locke Foundation Principles Move The State In The Right Direction John William Pope Center Guest Editorial, Editorials, Op-Ed & Politics Direct Primary Care: Benefiting Employers And The State


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