Submitted by Martha Brock on Fri, 05/10/2013 - 12:21pm
From the Fayetteville Observer
By Gary D. Robertson
The Associated Press
RALEIGH - Senate Republicans unveiled details about their long-awaited tax overhaul proposal Tuesday, saying that lower income tax rates and expanding the scope of the sales tax is fair to all, will boost the state's economy and cut taxes for most people. But critics say lower-income people will pay more overall.
The three-year plan would reduce individual and corporate income tax rates as well as cut the combined state and local sales tax that consumers in most counties pay from 6.75 percent to 6.5 percent. The plan would eliminate the estate tax.
But the overhaul would make North Carolina's sales tax base one of the broadest in the country by eliminating exemptions and expanding it to apply to most services
Rucho, one of the legislature's leading voices on tax policy, argues the state needs to raise more revenue with taxes akin to HDL cholesterol, which helps keeps the arteries of commerce clear and cash flowing through the economy. "If you want to achieve economic growth, you want to pick the best taxes that will allow you to grow your economy," Rucho said.
As I've mentioned before, 74% of NC businesses employ 10 people or less. The vast majority of those (truly) small businesses provide services (as opposed to products), such as landscaping, HVAC repair, haircuts, etc. And they're now coming into the crosshairs of Republicans like Rucho who want to ease the tax burden on their wealthy patrons.
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