Commentary

Attorney/CPA authors best tax policy op-ed of the week

Be sure to check out attorney/CPA Richard Nordan’s outstanding op-ed critiquing the proposed state income tax cap that will appear on the fall ballot in today’s edition of Raleigh’s News & Observer. In “Reject the NC tax cap. It will hurt government and most taxpayers.” Nordan first blasts the two infamous experiments with similar caps (California’s ill-fated Proposition 13 and Colorado’s disastrous “TABOR” amendment).

He then goes on to say this:

“These constitutional tax caps deprive elected officials of the flexibility they need to answer the crises of the day. The caps also deprive future electorates from expressing their collective philosophy through the election process.

Moreover, by zeroing in on the income tax, this constitutional amendment would guarantee that if increased revenues are needed in the future, the legislature would be looking at the sales tax or property tax to make up the difference.

From the standpoint of the citizens, the property tax is the most blunt form of taxation. Most people will owe the total annual tax liability even if they got sick or lost their job. This is not a supple form of taxation.

The sales tax is regressive. Its burden grows heavier the lower your income.

The income tax, on the other hand, does change with your financial circumstances.. If you lost your job due to illness, were laid off or took time off to care for a child or aging parent, your income and hence your tax liability will go down.

From the standpoint of the state, this constitutional amendment will make it harder for future sessions of the legislature to grapple with the fiscal and economic conditions of the day or natural disasters, tying their hands to our collective state of mind in 2018.

From the standpoint of the citizen/taxpayer, this amendment makes it more likely that state and local governments will rely upon sales taxes and property taxes if increased revenues are needed in the future. These forms of taxation are less sensitive to the current income of the taxpayer.

The tax cap amendment is a lose-lose proposition for the government and the taxpayer and should be rejected.”

Amen.

Check Also

Another editorial pleads with Burr, Tillis to end ideological attack on federal courts

As Clayton Henkel noted yesterday, the Winston-Salem Journal ...

Top Stories from NCPW

  • News
  • Commentary

Shortly after 10 o’clock yesterday morning, a federal jury in the hog nuisance case Gillis vs. Murph [...]

North Carolina state law would seem to provide just two options for Wayne County school leaders, clo [...]

Perhaps the sixth time is the charm? Rep. David Lewis (R-Harnett) unveiled another attempt Tuesday b [...]

As the UNC Board of Governors prepares to take up the fate of the Silent Sam Confederate monument Fr [...]

Fayetteville is my hometown more than any – I was born here to military parents, this is where my gr [...]

It’s long been understood by those who pay attention to public policy debates that the age-old conse [...]

The post The newest nuisance in the 9th: Election Fraud Scandal appeared first on NC Policy Watch. [...]

Earlier this week, the UNC-Chapel Hill Board of Trustees (BoT) began plans to erect a statue dedicat [...]