Dr. Roy Cordato, John Locke Foundation vice president for research and resident scholar, explains why he believes North Carolina should end double taxation of capital gains. Cordato offered these comments during an interview with Donna Martinez for Carolina Journal Radio. Watch the video and read the full report below.
North Carolina’s tax code, even after significant reform in 2013, double taxes returns to capital investment.
Taxes on capital gains should be repealed.
Complete repeal would cost the state treasury and save taxpayers about $500 million in 2017.
This could be accomplished gradually by putting in place first a 25 percent exclusion at a state treasury cost of about $125 million and, beyond that, a 50 percent exclusion at a cost to the treasury and savings to taxpayers of $250 million.