US wealth gap putting the squeeze on state revenue

[mwooldri]

10. Something states won't do: Reform "Use Tax".

I know not all states have this, but NC has this "use tax" which is intended to capture out of state sales tax.

As it stands, one can document their out of state purchases, pay a flat rate based on income, or declare no out of state purchases.

A simple reform is to make the use tax more progressive. A higher rate of use tax for higher income people, coupled with some kind of way to audit out of state spending, could net more revenue that way. Also residency rules could be changed by assuming an individual is in-state all year if they own residential property that's very highly valued.

Put it all in a nice legislative package, call it something like "contributing to the community act" and put some other measures in that reward volunteerism (some kind of tax break) or stuff like that.