Budget suspense soon relieved
Dire economic straits have drastically reduced state tax income, and have pushed costs up, creating a budget situation worse than any in decades. This truth seems to be lost on many, including some supporters of education, who argue, simply, “cut someplace else”. Fact is, there is no someplace else. North Carolina, by law, must balance its budget, and trimming here and there won’t come close to doing the trick.
From the Raleigh News and Observer:
Reality is that teacher layoffs, higher tuition and less spending on health are in the cards. Reality is that for all the teapot museum grants everyone decries, only cuts to the biggest, most sensitive budget categories produce enough savings. That’s why the House budget, as passed, includes tax increases to ease the cuts’ sting. The specifics here are sobering – and not just the small hike in the liquor tax.
A quarter-percentage-point increase in the state sales tax (to 4.75 percent) hits folks in the wallet every time they shop. And while the House widens the sales tax’s scope, extending it to some services, this is hardly the long-sought, comprehensive sales tax reform that would lower the rate in return for broadening the tax’s reach. It’s just a tax hike, necessary but regrettable. A boost in income tax rates for earnings over $200,000 also produces big money, but does nothing to keep our tax burden in line with surrounding states’.
Lawmakers are dancing fast to figure out which tax hikes will offend fewer people less, but can draw some consolation from a recent poll that shows 60 percent of Tarheels are OK with tax rate increases.
Tags: Education, income tax rates, North Carolina, Raleigh, Raleigh News and Observer, state sales tax, tax burden, tax increases, tax rate increases, teacher layoffs
Related posts:
