The latest Money magazine lists Durham among five ?college towns? designated among the best places to retire.
While it?s good news that the Bull City made the list, it?s bad news that Durham performed worst among the five in the category of ?top state income tax.?
The 7.75 percent rate listed for Durham was far higher than the 6 percent rate for No. 2 Lexington, Kentucky. (After reading the report in the magazine?s dead-tree version, I noticed that an online commenter asked about Durham, ?Who in their right mind would retire in a state that taxes your retirement income??)
I note these statistics primarily to focus on the importance of the top marginal tax rate. Try as they might, government officials who contend that the highest rates affect only the highest earners ignore the fact that everyone pays attention to the highest rates. Uncompetitive top marginal rates deflect people (and business) away from North Carolina.
Click here, here, and here for more discussion of the importance of the marginal tax rate.
