North Carolina is my new favorite state:
RALEIGH, N.C. — At the moment, seven states across the country don’t levy a tax on income, and North Carolina Republicans want to make it eight, according to a powerful member of the state legislature.
State Sen. Bob Rucho, a Mecklenburg County Republican and chairman of the Senate Finance Committee, said Wednesday that he hoped to use the 2015 legislative session to eliminate the state income tax, replacing it with a consumption-based sales tax to make up for the lost revenue.
Taxing income affects employment. Taxing consumption encourages savings.
Not sure that would be appropriate here, though. Having the right mix of taxes is important, and we have a pretty good one here. Our sales tax is already high. How many more cents on the dollar would it take to replace the revenue from the income tax? I'd guess it would give us the highest sales tax in the nation.
