House Budget Talking Points and Considerations

1. Temporary increases in the sales tax and income tax rates were imposed in 2001 with the promise that they would be repealed, or sunset in 2003. Economic conditions and choices made by the leadership did not allow the taxes to be repealed, as promised in 2003, and they were extended until 2005. In 2005, the promises of repeal were again broken and the taxes were again extended until 2007. Currently, there is a $2 billion surplus in revenue. When, if not now, is the time to repeal these temporary taxes? When, if not now, will promises be honored? When, if not now, will the taxpayer get a break?

2. Due to unusual and unique economic conditions, North Carolina finds itself with a $2 billion surplus in revenue this year. Instead of making good on the promises to repeal “temporary” taxes, the House proposes increasing spending by 9.74 percent over last year’s spending. Admittedly, some of the spending is for good causes — teacher and state employee raises and help for the counties with Medicaid burden. However, not all of the spending is justified or necessary. Once again, it comes down to a matter of priorities. What is more important new and expanded programs or returning money to taxpayers? A vote on this budget will clearly identify those members who value a promise kept, who understand and respect the sacrifice of each taxpayer, and are courageous enough to budget for the future.

Full Article and Related Links:

This article was posted in Budget & Taxes by Becki Gray on June 13, 2006 at 12:00 AM.

© 2011 The Civitas Institute. Visit us on the web at www.nccivitas.org.
This article can be found at http://www.nccivitas.org/2006/house-budget-talking-points-and-considerations/

Comments on this article

No Comments Yet...

Leave a Reply

Sorry, due to spammers you must have Javascript enabled to make comments.