NC Tax Reform

My son gave me a great idea that Budget Director Pope and the folks at the NC General Assembly should consider. Since for election donation purposes corporations are considered people, why not tax corporations at the same rate as the personal income tax?

Seems very reasonable to me. A real flat tax for the flat earth crowd.

Economist-for-hire Arthur Laffer - the man behind the General Assembly's plan to eliminate the personal & corporate income taxes - headlined an event in Raleigh last night with members of the American Legislative Exchange Council. Under the Dome did a piece on the event that's worth the read.

Just a few reasons why a consumption tax is a bad idea:

Berger said he’s looking to institute a consumption-based tax system that includes more services subject to sales tax. While he was not forthcoming with specifics, we could see prescription drugs and doctor’s visits, higher fees for court and government services, higher fees on driver’s licenses and vehicle registrations, a hefty hike in sales tax and probably two dozen other new or higher fees we can’t even imagine.

He also intends to re-impose the full state sales tax on groceries.

Which is exactly the opposite direction we need to go to address NC's growing poverty problem. Elections do have consequences, and it appears the poor are going to suffer those consequences more than anyone else.