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Taxes on Social Security, Prescription Drugs, Food?
Posted By Elaine Ryan On June 7, 2013 @ 5:26 pm In Where We Stand | No Comments
Tax reform proposals are bubbling up in a number of states across the country as elected officials look for ways to stimulate the state’s economy or revamp outdated tax codes. Sometimes, however, a key element gets lost in the debate: what’s fair.
Right now, in North Carolina, state leaders are working on a variety of proposals that would force North Carolinians to pay new taxes on the things they count on most, including the basics of everyday living. One Senate proposal would even tax Social Security, prescription drugs and food.
Bottom line: Piling on more taxes isn’t the answer. Other states that have slightly lowered the income tax and stuck new taxes on goods and services have NOT seen the boost in jobs or the economy that they promised.
However, these facts remain in North Carolina:
To quote AARP North Carolina State Director Doug Dickerson:
“Food, prescription drugs, and Social Security aren’t luxuries – they are the essentials of daily living. Seniors can’t afford to pay unnecessary taxes on these basic necessities – a fact recognized by most other states in the country. Today, only 10 states currently tax groceries, while only Illinois taxes prescription drugs. We are working to make sure North Carolina is not added to those lists.”
Just this week, Missouri Governor Jay Nixon vetoed a tax bill that would impose a new tax on prescription drugs.
The trend of shifting taxes away from income and towards the sale of goods and services emerged out of the Heartland last year, with a major proposal introduced in Kansas.
Stay tuned as the tax reform debate continues in North Carolina – and other states across the country.
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