House’s Flat Income Tax a Windfall for the Wealthy

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.