North Carolina Justice Center: A Capital Loss – Eliminating taxes on capital gains would make North Carolina’s tax system more unfair
ITEP Work in ActionTax cut proponents in North Carolina are pushing another plan that would benefit the wealthy at the expense of everyone else, turning their sights to eliminating the state income tax on the sale of artwork, vacation homes and other high-end capital gains that only a few North Carolinians profit from. Contrary to supporters’ claims, this tax cut would not spur economic growth. It would benefit a small number of wealthy individuals and profitable corporations, wasting another half-billion dollars that could otherwise be used to bolster schools, public safety and other things average people rely on each day and that a strong economy needs to thrive. Furthermore, tax breaks for capital gains would make the state tax system even more unfair, pushing more responsibility onto middle- and low-income taxpayers.