The Civitas Institute, a conservative think tank, Tuesday released a report calling for a scrapping of the North Carolina income tax and replacing it with a consumption-based tax.
The report argues that North Carolina's current income tax system harms North Carolina's economy and a switch to a broad-based sales tax would result in an increase in the rate of personal income growth and accelerate job creation.
“Replacing the income tax with a consumption-based tax will restore North Carolina’s economic health and benefit all of our state’s citizens,” Civitas Institute President Francis DeLuca said. “Government data show that North Carolinians need more jobs and bigger paychecks, and that’s exactly what they will get with this proposal.”
The report is the opening salvo in what is likely to be a spirted debate in the legislature about overhauling the state's tax system.
The report was authored by Arduin, Laffer, & Moore Econometrics, in partnership with the Civitas Institute.
The Civitas Institute stressed that this report did not necessarily reflect the reviews of Raleigh busienssman Art Pope, who is serving as a major transition advisor to Gov.-elect Pat McCrory. Pope started the Civitas Institute.
To access the study, click here: http://www.nccivitas.org/2012/