North Carolina Justice Center: Higher Rates on Higher Income: Why a Graduated Income Tax is Good Policy for North Carolina

At the same time, a graduated rate structure — in contrast with the state’s current flat tax rate on income — can make more revenue available for key public investments, generating broad-based benefits to many people and communities. It is also better able to keep up with the needs of a growing state. That is because graduated rates do a better job aligning with where income is concentrated and growing.

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