North Carolina's Republican Tax Experiment

But not in North Carolina. The state has taken a very big first step in overhauling its tax code -- enacting its first major reform in 80 years.

The change, signed into law last month, creates a modified flat tax system, with a single income tax rate, an increased standard deduction and fewer tax breaks, as well as the elimination of the personal exemption and a $50,000 deduction for small business owners. It also repeals the state's estate tax.

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