NC Budget and Tax Center

Will Tax Negotiations Flow from Principles of Sound Taxation?

As the House and Senate negotiate their tax plans, it is important that the offers and counter-offers put forward align with the principles of sound taxation. The answers to practical questions about taxes – like how high or low should they be, who should pay how much, what should be taxed – truly should flow from rock-solid principles based on the best available research and evidence.

Here are a few principles that policymakers should keep in mind this weekend:

  • A tax system needs to pay for services needed to promote economic growth, public safety and many other important functions. Both short- and long-term adequacy are critical.
  • Equity needs to be built in. That means, for example, that lower income households don’t pay a higher share of their income in taxes than do high income households; and that people in similar economic situations pay roughly similar taxes.
  • A tax system needs to be constructed in ways that avoid, to the extent possible, unpredictable, large fluctuations in the amount of revenue collected in a given year.
  • The amount of revenue collected should increase as the economy expands, reflecting the increased needs for education, transportation and many other services.

3 Comments


  1. Doug

    June 21, 2013 at 4:00 pm

    Why should we start thinking about sound taxation in NC now? It has been soundly ignored by the ruling democrat party for what 100+ years?

  2. david esmay

    June 21, 2013 at 7:49 pm

    No, the NC GOTP is neither sound of mind, nor in control of their faculties.

  3. Doug

    June 21, 2013 at 9:00 pm

    Well…goober agrees with something I said..woo hoo!

Check Also

Three important ways in which President Trump’s proposed budget shifts costs to North Carolina

On the heels of a federal tax plan ...

Top Stories from NCPW

  • News
  • Commentary

Students, faculty and staff at UNC continue protest the Chapel Hill campus’ Confederate monument, “S [...]

On a sultry day last September, Megan Stilley arrived at Lanier Farms, a large swine operation in ru [...]

When North Carolina lawmakers approved what one Republican described as a “historic” investment in r [...]

Lawmakers late last week released two new versions of a judicial redistricting bill, making these th [...]

The General Assembly’s latest mashup legislation is an example of government at its worst In the com [...]

The post Tied up in knots appeared first on NC Policy Watch. [...]

Every day brings new reports that Congress is interested in further whittling away at the programs c [...]

When Congress finally passed a continuing resolution last month allowing the government to re-open, [...]

Upcoming Events

Friday, Feb. 16

12:00 PM

Crucial Conversation – Prof. Peter Edelman discusses his new book, Not a Crime to be Poor: The Criminalization of Poverty in America

Prof. Edelman is coming to the Triangle to mark the 50th anniversary of Durham-based nonprofit MDC. His visit is the first of a series of MDC-sponsored events focused on ways that Southern leaders can work together to create an Infrastructure of Opportunity that shapes a South where all people thrive.”