GOP's tax reform scheme unfair, bad for growth

But those things probably aren't their goal, anyway:

Sen. Bob Rucho, a Republican leading the tax overhaul efforts, said revamping the system is necessary because household consumption has changed, eroding the base of the state’s tax system. Rucho said he favors taxing all services on the list. “It should be a balanced approach because there is more and more of a shift toward the service industry in North Carolina … and it’s just a matter of fairness that everybody should be treated the same,” he said.

Taxing services instead of income is about as far away from "fair" as you can get. Not only does it shift the burden down to those who can afford it the least, it puts downward pressure on small businesses, who employ about 3/4 of the work force. And (if that's not enough) it will create a budget deficit the likes we haven't seen for decades:

A recent study estimated the broader tax on services would collect about $2.1 billion in additional revenue for the state at the current rate, a small part of what is needed to offset the approximately $12 billion generated by the corporate and personal income taxes. Lawmakers are also considering increase the sales tax, so that number could increase.

But like many proposals the NC GOP is cooking up, we already have ample evidence from other states showing them to be bad ideas:

As the economy emerged from the recession of the early 1990s and entered the remarkable boom period of the middle and late 1990s, many states enacted tax cuts. The deepest occurred in the six states — Colorado, Connecticut, Delaware, Massachusetts, New Jersey, and New York — that reduced state taxes by more than 10 percent of revenue.[5] Each of these state’s tax cutting included major personal income tax cuts.

But after enacting the cuts, Connecticut and the other biggest tax-cutting states saw their economies grow more slowly than the economies of more cautious states. Between 2000 and 2007 — the period containing the first full economic cycle following the implementation of the tax cuts[7] — the states that had cut taxes most:

■Created fewer jobs. The top five tax-cutting states saw job growth of less than 0.3 percent per year, on average, compared to 1.0 percent for the other 44 states. (New Jersey is excluded because — unlike any of the other big tax-cutting states — that state raised taxes by enough in the 2000s to offset fully the 1990s tax cuts.)
■Had slower income growth. In four of the five biggest tax-cutting states (excepting only Delaware) personal income grew more slowly than it did on average in the other 44 states. In none of the biggest tax cutting states did personal income growth exceed inflation.

Periodically, major movements by Conservatives tout the growth potential of tax-cutting. But the only demonstrable result is an increase in the accumulation of wealth by the top 2-5%, and a decrease in the wealth of everybody else.

And make no mistake, the leaders of those movements know damn good and well what is going to happen, making them the most dishonest of the bunch.