Taxpayers Lose Again as North Carolina Legislators Permit Local Governments to Raise Taxes

Yesterday, the North Carolina House of Representatives voted to increase taxes on North Carolinians. In a 60-55 vote (55 Democrats and 5 Republicans favored the measure), the House endorsed allowing local governments to increase sales tax from 6.5% to 7% to cover budget shortfalls caused by the Governor taking the reimbursement funds owed to local governments.

North Carolina CSE director Jonathan Hill commented:

“It’s amazing how North Carolina’s taxpayers continue to get the short end of the stick regarding the state’s budget deficit. Yesterday’s vote is simply due to new government spending on the state level, which will leave taxpayers footing the bill once again.

“This bill came to the floor and passed because legislators in Raleigh and the governor can’t control their appetites to spend tax dollars on new government programs. The Governor and the leaders in the General Assembly made the decision to increase spending on their programs and not to send money collected expressly for the cities and counties, which have made budgeting decision based on these returns. Without these promised funds from the state, local governments are forced to find ways to fill the holes left in their budgets. Not surprising, the taxpayer gets the stuck paying the bill. New sales taxes will come on top of old sales taxes that are due to expire in July of 2003.

“No doubt that the winner in all of this is the Governor and tax-and-spend liberals in Raleigh. They get to spend more taxpayer dollars on their programs, and then they put the onus of raising taxes on local governments to cover their budget shortfalls. What a great way to pass the buck and stick the taxpayer again!”