A Billion Dollar Tax Increase is the Wrong Action at the Wrong Time

When the state legislature passed the new state budget, some legislators disregarded the economic realities in North Carolina — the citizens of this state cannot afford this massive $1 billion tax increase. North Carolinians are facing some of the toughest economic times in our state’s history. Layoffs are staggering, bankruptcies have increased dramatically, and we are suffering through a national crisis. The legislators that voted for this $1 billion tax increase have now added to our economic decline.

A $1 billion tax increase is the wrong action at the wrong time. The tax package passed mostly along party lines in both chambers with 61 Democrats voting for the tax increase and 55 Republicans voting against in the House. In the Senate, 31 Democrats voted for the tax increase and 14 Republicans voted no.

Think about what North Carolinians are facing. In the first quarter of this year alone, there were over 8,000 bankruptcies filed. There have been massive layoffs throughout the state while the national economy is taking a pounding. The aviation industry has already announced that there will be enormous job cuts due to the national crisis, and our textile industry has lost more jobs than any other state.

Consider the North Carolinians who are now or soon could be out of work: the thousands employed with Midway Airlines, Northern Telecom, Alcatel, and US Airways. These are real people with real families who are in financial trouble. The working families in this state are always the first to suffer. North Carolina already has the highest average tax burden in the Southeast and imposes some of the highest tax rates in the nation.

Next fall, voters will be given the opportunity to show the out-of-touch legislators what they think. They will also have the opportunity to thank those legislators that voted against this massive $1 billion tax increase and how much they appreciate their sensitivity to the financial hardships we are facing in North Carolina.

Governor Easley, who praised this tax package and the legislators who voted for it should know how you feel. I encourage you to let your voice be heard by those elected to represent you: a $1 billion tax increase is the wrong action at the wrong time.