I have written more than once about the abomination of income taxes. Personally, I believe that income taxes violate the 13th Amendment to the US Constitution. Also, I firmly believe that we should repeal the 16th Amendment.
The North Carolina income tax is based upon the federal income tax system. Basically, it starts where the federal system leaves off, makes some additions and adjustments, and assesses a liability. It is unethical based just upon the idea that it is forced taxation upon one's labor. Non-compliance results in loss of property, legal action, and even prison time. In my opinion, it is forced labor to benefit others and akin to slavery. It is more insidious when you consider the idea that many do not pay their share of a tax burden and live to suckle off the labor of others by the government forcibly taking money from law abiding, tax paying, productive citizens and giving it to those who do nothing to receive their governmental milk from a fat teat.
Wednesday, I did our state and federal tax returns. I found a program that I like at taxact.com Their software is about half the price of Turbo Tax and others, and works just fine. I have used it three years in a row. The software asks all the same questions I answered each time I went to see an accountant and paid anywhere from $120 to $180. $20 is a better price, in my opinion.
Here is the part that is totally evil about the North Carolina income tax system. Did you know that if you got a refund from last year's taxes that the amount of your refund is considered income for the following tax year and therefore subject to income tax? If in tax year 2005 you got a refund of $500 (to make up a figure) from the state in 2006, you are supposed to claim an extra $500 of income for tax year 2006.
That is pure evil and double taxation. I pay my taxes with taxed dollars. The state takes and holds my money without any interest or consideration. When the taxes collected exceed the amount actually owed, I am due back the overage. Again, this is money paid above and beyond what I would owe. The state treasury holds this money for a year and does not pay interest on it. They earn interest. Then, I am supposed to be grateful to get a refund of my own money. That already taxed money is then considered income a SECOND time and I have to pay taxes on it yet again. That is just plain unethical.
North Carolina has one of the highest tax burdens in the Southeast. We are getting as bad as some states in the Northeast, notorious for high taxes. I read some statistic that showed that Massachusetts has a similar burden percentage wise as we pay here, after all taxes are figured.
We pay federal income tax, state income tax, sales tax, property tax, excise taxes, and the list goes on. North Carolina is more brutal in income tax enforcement and collection than the federal IRS. Been there, lived that. To top it all off, the state graciously taxes us on "income" that has already been taxed.
This is why I love the Fair Tax Plan. There are a few things perhaps not taken into account in that plan, but it is still far more fair than income tax. I would even be in favor of a flat tax, provided that ALL people pay it, regardless of income level. 9% is 9%, regardless of income level and is fair to everyone. Eliminate all exemptions, deductions, and include all citizens and I will be in favor of it. I should be able to figure out income taxes with a calculator and 30 seconds of my time. A simple post card of tax liability would do fine and eliminate much of the IRS, both federal and state. I am all for that.