State House Committee Approves A Wide-based Tax Cut
Posted May 26, 1998 7:00 a.m. EDT
RALEIGH — Wednesday, a state house committee approved a wide-ranging tax cut proposal. The plan is a broad-based package of cuts that would affect every taxpayer in the state.
The State Senate first voted to eliminate the sales tax on food. Now, a house committee approved a wide-ranging bill that not only repeals the food tax, but eliminates the state inheritance tax, increases the property tax homestead exemption, increases and indexes the income tax personal exemption and increases charitable giving credits.
"Today what we did was to return a portion of the over-collected surplus in taxes to the people," Wake County Representative Russell Capps said.
The total package would cost more than $400 million next year, but proponents said that is just a fraction of the $1.4 billion surplus the state has.
Senate Democrats are not convinced. Gaston County Senator David Hoyle said that the package would result in a budget deficit, and accuses House Republicans of playing politics.
"They know that bill is now a Christmas bill," Hoyle said. "They've hung tax cuts of all kinds and all sizes on it and they know that we can't prudently do that and be fiscally responsible."
Some taxpayers have differing views.
"I think they have a low priority in our state government at this point."
Senator Hoyle said that the economy is good now, but is concerned about the future and the possibility that the state won't be prepared, when and if the next recession hits.