June 14, 2013

North Carolina Budget & Tax Center: House’s Flat Income Tax a Windfall for the Wealthy

ITEP Work in Action

The tax plan under consideration by the North Carolina House of Representatives would create a single income tax rate – known as a flat tax – that will shift taxes from the wealthy onto others. Proponents claim that doing away with the three rates North Carolina currently has, which rise along with income, is fair because everyone would then pay the same rate. The reality is that the adoption of a flat rate will give the wealthiest taxpayers a significant tax cut while creating a substantial loss of income tax revenue. The result is an even more lopsided state and local tax system- low and middle paying more as a share of income and rich paying less.

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