GOP lawmakers want to rid North Carolina of income tax
GREENSBORO, N.C.— Anytime you mention taxes, the reaction is going to be mixed.
So, it’s no surprise what North Carolina Republican lawmakers want to do now is drawing criticism.
The GOP wants to get rid of personal and corporate taxes in exchange for a higher state sales tax, as well as taxing medical expenses and services that are currently tax-free.
Senator Bob Rucho from Mecklenburg County says it is needed to kick-start the economy and lure in new business.
“If we can make the North Carolina economy competitive and change the tax policy, we could put the together the best economy in the southeast,” Rucho said.
Here’s a breakdown of how this proposal would work:
The sales tax in most of the state is 6.75 percent. The new proposal would bring it to 8.05.
The grocery tax is currently at 2 percent. But under the proposal get ready to pay more.
The proposal would quadruple the tax to 8.05 percent in most of the state.
Business franchise taxes would go away. But charge a new 1.05 percent tax to all businesses tied to either net worth or gross receipts.
All Real Estate transactions would be taxed at a 1 percent increase from the current rate 0.2 percent based on a property’s value.
Kenneth Simmons is worried about services that could be taxed, like prescription drugs. He spends nearly $700 a month on meds for his wife who has a pacemaker.
“Well you are going to have to get the money from somewhere that’s for sure,” Simmons said.
The General Assembly is expected to discuss the proposal in July.