A progressive income tax system shifts the tax burden to those who are most able to pay; a uniform tax rate system shifts the tax burden away from the rich to the middle and lower income taxpayers. The Republican leaders have changed our tax system from a progressive tax system to a uniform tax rate system.
Prior to 2014, North Carolina had a three tier tax rate system: 6%, 7%, and 7.75%. This
progressive tax system shifts the tax burden to those most able to pay. It also provides some protection to higher income taxpayers during hard times – when income goes down, the tax rate also goes down. Many, including some very wealthy members of society, consider the progressive tax system beneficial because it means that those who can afford to pay more taxes do, and those who are poor can spend more of their wages on essentials rather than on taxes. A person with taxable income of $400,000 is generally able to pay 7.75% tax on that income with no financial worries; his after-tax income would likely cover his normal expenses and provide funds for savings and investments. On the other hand, an individual with taxable income of $20,000 will have much more difficulty paying 7.75% tax on that income, since his after-tax income would barely cover his normal expenses and leave nothing for savings and investments. Allowing him to pay the tax a lower rate provides some relief for the low income taxpayer.
This level tax rate approach is unfair and should be reversed. It is important to remove from office the Republican leaders who implemented it; VOTE DEMOCRATIC!!
Voting 2016 