House Would Replace Graduated Income Tax With Flat Tax | Eastern North Carolina Now

    Publisher's note: As the new slang would merit this expression: My bad. I just found this post in my unpublished section of BCN. Barry Smith is a fine reporter for the Carolina Journal and I do believe whatever Barry writes about is important, so in the interest of information exposition i will publish it now.

    The author of this post is Barry Smith, who is an associate editor to the Carolina Journal, John Hood Publisher.

GOP proposal also would lower sales tax, broaden base to cover some services

    RALEIGH     House Republicans Thursday unveiled their tax modification plan, a move that would eliminate the progressive income tax rate in favor of a flat tax.

    It also would lower the sales tax rate slightly and broaden the sales tax to include repair, maintenance, cleaning, and installation services, and service contracts. Unlike a competing tax plan presented by Senate Republicans, it would not expand the sales tax base to cover all services.

    The plan would establish a flat 5.9 percent flat rate for personal income tax. Currently, the tax rate varies from 6 percent to 7.75 percent, depending on income.

    The corporate income tax would be reduced from 6.9 percent to 6.75 percent.

    The combined state and local sales tax rate would be reduced from 6.75 percent to 6.65 percent, with the reduction coming at the local sales tax level.

    Republican Gov. Pat McCrory, who has called for tax reform, had a positive response to the House GOP plan.

    "I am encouraged by the bill details I have seen in the House plan on reforming North Carolina's tax code," McCrory said in a statement. "The House plan combined with other proposals provides several options that will allow us to develop competitive tax reform which is fair to North Carolina families, attracts job creators, and provides certainty that will encourage home-grown businesses to expand. My goal is to work with leaders in both the House and Senate to implement reform that is financially sound, fair and rewards productivity, savings, and investment."

    John Hood, president of the John Locke Foundation, said that with tax plans from both chambers on the table, it's time to bargain and hammer out a plan.

    "The two sides really aren't that far apart philosophically," Hood said. "They differ on practical considerations. For taxpayers, the only truly impractical outcome here would be for legislators not to come to agreement."

    Hood notes that the House plan would save taxpayers about $485 million by 2015-16, whereas the Senate proposal anticipates a net savings to taxpayers of about $1 billion over three years.

    The bill would repeal gross receipts franchise taxes on electricity and repeal excise taxes on piped natural gas in favor of making them subject to the full state and local sales tax rate.

    Similarly, gross receipts taxes on live entertainment and movies would be repealed, with sales taxes being imposed on those entertainment events. The bill would repeal the Energy Star sales tax holiday.

    Personal exemptions would be eliminated on the personal income tax. However, the standard deduction would be increased. For married couples filing jointly, the standard deduction would go from $6,000 to $12,000. The head of household standard deduction would increase from $4,400 to $9,600. The standard deduction for single filers and for married couples filing separately would go from $3,000 to $6,000.

    The Senate is expected to fill in details of its tax plan as early as next week.
Go Back

Leave a Guest Comment

Your Name or Alias
Your Email Address ( your email address will not be published)
Enter Your Comment ( no code or urls allowed, text only please )


( August 19th, 2013 @ 10:15 am )
Coincidentally, I just put an article post from the John Locke's North Carolina History Project about Tariffs, which comprised 90% of all Federal taxation before the Civil War.
( August 19th, 2013 @ 9:12 am )
It is good that you are getting serious about tax reform BUT, the flat tax is just another form of income tax. Take the power and the opportunity for abuse away from government. Replace the income tax, flat tax with a consumption tax. Collect the revenue needed to run the government at the point of sale. Retailers are already doing it for state taxes just expand to include Federal tax collection. That way there are no tax filing requirements, Get the government out of our personal finances all together

Assessing the House Tax Plan John Locke Foundation Guest Editorial, Editorials, Op-Ed & Politics Digging a little deeper inside the faculty lounge at UNC


Latest Op-Ed & Politics

President Joe Biden’s son, Hunter Biden, will reportedly plead not guilty to federal gun charges, his lawyers said in a new court filing this week.
We often go to resources when doing research for a paper, for a sermon or talk, for Liturgy and Prayer. We cite our sources, something we learned how to do as juniors in high school
On Monday, U.S. District Judge Tanya Chutkan set an opening trial date of March 4, 2024, for former President Donald J. Trump’s alleged crimes as part of his efforts to challenge the 2020 election results.
Every hundred years or so, the world is blessed with a piece of art that propels civilization forward and enlightens a new generation, ensuring a better future for the human race. Bluey is that art.
DOJ had attempted to intervene after two leftist activists were arrested protesting school board meeting, The Daily Wire reported.
In celebration of the United States of America’s Independence Day, Carolina Journal offers the text of the Declaration of Independence.


Americans’ average household income dropped in 2022 for the third straight year as President Joe Biden continues to paint a rosy economic picture.
How Washington, North Carolina neglects African-American, Latino and Poor Communities
Four hunters bagged the biggest alligator ever officially caught in the state of Mississippi after an all-night battle.
College students will have an exciting opportunity this fall, as several educational institutions have announced they will offer credit in gender studies courses to any students who are able to sit through the entirety of the new Barbie movie.
Former Rep. Tulsi Gabbard, who recently left the Democratic Party and declared herself an independent, torched President Joe Biden over the prosecution of former President Donald Trump.
National and state



Back to Top