Tax systems need overhaul

An editorial in today's issue of The State newspaper from Columbia, S.C., could have been part of last year's call by the Center for a Better South for an improved tax system:

The problem with our tax system isn’t simply that one tax is too high or another too low. The problem is that our tax system was crafted for the Depression-era economy, when property ownership was a proxy for wealth, and people spent most of their money on food, clothing and other tangible goods. The problem is that this outdated tax system has been nipped and tucked over the decades to carve out special exemptions, exclusions and credits, sometimes for legitimate purposes but often simply as a favor to favor-bearing special interests.

Like the editorial, the Center called for comprehensive structural tax reform by legislatures across the South to bring outdated systems into the modern era. Does this sound familiar:

"... We argue it is incumbent for lawmakers across the South to revisit their state tax codes in a holistic manner to bring our tax systems into the 21^st century. All components – the income tax, sales tax, property tax and others – should be thoroughly examined and modernized to improve and ensure the fairness, adequacy and integrity of our tax systems. In other words, lawmakers can truly represent people across the South by restructuring state tax codes to make them more representative of today’s complex and rapidly changing economy."

• Learn more about the Center.