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nc senate committee looking at broadening state sales tax
Published April 21, 2009Views: 374
So this is how they're going to find the $500 million they wrote into the budget but never stipulated where it was coming from?
Appears to be the case.
RALEIGH, N.C. — The state Senate Finance Committee worked Tuesday to finalize details of a proposed change in the state tax structure that would broaden the base of the sales tax and at the same time, trimming it by as much as one percent.
The plan, which could be released Wednesday, would likely reduce the state sales tax from 6.75 percent to 5.75 percent, lower the corporate income tax rate and potentially eliminate the 2 percent food tax.
But it would require a sales tax on some non-taxed services, such as landscaping, pest control and home repairs and auto repairs. Professional services, such as legal assistance and accounting would remain tax-free.
Gov. Beverly Perdue has already proposed in her $21 billion budget more than $500 million in additional revenue by increasing the so-called sin tax on alcohol by 5 percent and cigarettes by $1 a pack.
Sen. David Hoyle, D-Gaston, who co-chairs the committee, however, said Tuesday he doesn't think that should be the only new revenue source. Broadening the tax base has been up for discussion for more than 50 years, he added.
"We would be shifting, and we would be broadening," he said. "We're talking about lowering the sales tax potentially a full cent."
Perdue said Tuesday that she believes it is hard to support the idea given the state of the economy but will wait to pass judgment until the official tax proposal is released.
"I think it's a hard time to talk about any kind of broad-based taxes just because of the economy," she said.
Some business owners who would be effected by the tax change, however, said Tuesday they don't like it, because it would cut profits and put a higher tax burden on them..
"It'll hurt my clients' bottom lines, and my bottom line," said Chuck Wright, who owns a commercial lawn maintenance company. "Then, we all have to pass it down. I mean, nothing happens in a vacuum."
"Change is very hard, but it may be time to change," Hoyle said. "I think the long-range benefit for the state would be really, really good."
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It appears that shifting taxes (add here, take away there and single out specific services, products) is the only intelligent solution they can come up with?
What cuts have they made in their budget, seriously?
Filed under: Economy
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GOLO member since December 12, 2007
April 23, 2009 12:36 p.m.
GOLO member since April 9, 2008
April 22, 2009 10:59 a.m.
I love how the conveniently left off the percentage which that $1 makes up. The tax was previously $0.35 per pack, making it an increase of 287%!!! FIVE percent for alcohol, 287 percent for cigarettes. I think the lawmakers drink more than they smoke!
GOLO member since July 13, 2007
April 22, 2009 9:54 a.m.
GOLO member since October 29, 2008
April 22, 2009 9:35 a.m.
GOLO member since December 11, 2007
April 22, 2009 8:42 a.m.
April 22, 2009 8:25 a.m.
They found a way to increase taxes ... again.
They refuse to cut spending, they refuse to just get back to providing core services. They will NOT let their pet projects go unfunded.
Isn't it about time we boot all incumbents folks? We need a national movement to get voters to understand that concept and turn all elected offices over to new blood, routinely.
GOLO member since July 11, 2007
April 22, 2009 8:02 a.m.
GOLO member since December 11, 2007
April 22, 2009 7:52 a.m.
This will keep happening as long as we keep sending demoplicans and repucrats to the state and federal legislatures. Neither party cares about what is best for the nation or the state. Since neither party can keep their spending under control, I say we give someone other than the same assclown parties a chance.
GOLO member since April 23, 2008
April 22, 2009 7:23 a.m.
GOLO member since July 20, 2007
April 22, 2009 6:19 a.m.
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