Friday, February 10, 2012

Why didn't the Greensboro News & Record mention the Regressive Tax in the Greensboro Partnership's "To Do List"?

'Regressive Tax'

A tax that takes a larger percentage from low-income people
than from high-income people.

"...a one-cent sales tax would generate approximately $29.7 million,
of which the County’s General Fund would be entitled to $28.8 million..."

A tax that takes a larger percentage of the income
of low-income people than of high-income people.

...Revenues from these taxes
can finance economic development departments or agencies,
or product such as industrial parks, or incentive offerings. hits lower-income individuals harder.

Option 1 - The North Carolina Legislature would
...give the residents of any county or city in the state
the option to vote in a sales tax...

Sales taxes...are generally considered to be regressive
...because expenses for food, clothing and shelter
tend to make up a higher percentage
of a lower income consumer's overall budget.

...the Texas model...was led by one Legislator
who had the courage and vision to champion this cause.

We encourage the Legislative delegation representing Guilford County
to do the same.

...even though the tax may be uniform (such as 7% sales tax),
lower income consumers are more affected by it
because they are less able to afford it.

Option 2 - Work with the appropriate powers
that be to create a special tax district for Guilford County
to achieve the same result.

...a regressive tax imposes a greater burden (relative to resources)
on the poor than on the rich
— there is an inverse relationship between the tax rate
and the taxpayer's ability to pay
as measured by assets, consumption, or income.

Other funding options – special purpose tax:
These taxes are similar to sales taxes
with the difference that they apply only to certain activities and transactions,
as opposed to broad-based sales taxes,
which apply to most retail purchases.

Regressive taxes tend to reduce the tax incidence
of people with higher ability-to-pay,
as they shift the incidence disproportionately to those
with lower ability-to-pay.

'Regressive Tax'

Car rental and hotel-motel taxes are politically popular
because of a perception
that the burden of the tax falls the heaviest on visitors to a city..."

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