It was a very easy choice this week for our Bad Bill of the Week – Senate Bill 202, the House’s version of the 2009-2011 budget.
What other bill pending in the General Assembly would destroy jobs, raise taxes on all North Carolinians and potentially kill any attempt at an economic recovery in our state?
Among the economically crippling taxes included:
• Increasing the sales tax by 1/4 percent to 7 percent (some counties are higher)
• Expanding the sales tax to services like auto repair, home repair and warranties
• Creating the “Christmas Present tax” – charging sales tax on shipping with FedEx and UPS (but not with the Post Office)
• Creating the “iTunes” tax – charging sales tax on Internet downloads like songs, software and ringtones for your cell phone
• Charging a sales tax on each and every ticket to movies and sporting events.
• Increasing the personal income tax – already the highest in the Southeast – paid not only by workers but by almost all small businesses as well
• Increasing taxes on small businesses – forcing LLCs to file as corporations and pay franchise tax
With almost 11 percent of North Carolina’s workforce unemployed, this bill will raise taxes by almost $800 million this fiscal year and over $1 billion the following fiscal year. The effect will be either killing or severely slowing new job creation in North Carolina’s economic recovery.
For these reason, Senate Bill 202 is this week’s bad bill of the week.