Posted on 01/28/2005 8:03:58 AM PST by TaxRelief
RALEIGH-Those who ignore history are doomed to repeat it.
Not exactly an original insight, I grant you, but a handy one for the current situation. Members of the General Assembly, including House Speaker Jim Black, are reportedly considering another half-cent sales-tax increase-taking the combined tax rate to 7.5 percent in most of the state-to pay for a package of state expenditures for hurricane relief.
This tax increase would be "temporary" (now, where have we heard that before?) and raise more than $300 million. And it would be on top of whatever tax increases lawmakers adopt for the fiscal year beginning July 1, increases that I'm told may range between $750 million and $1 billion on their own terms.
Residents of many Western counties are upset about how they've been treated by state politicians in the aftermath of Hurricanes Frances and Ivan last fall. I can understand why. Substantial property damage and loss of life followed the storms and their extensive flooding. But while hurricanes hitting Eastern North Carolina several years ago elicited an emergency legislative session within weeks and a relief package worth close to $1 billion, the western storms were much less of a galvanizing event in Raleigh. To add insult to injury, a ridiculously large portion of federal disaster relief already distributed since September has flowed into Piedmont and Eastern counties that were in many cases only lightly grazed by the hurricanes.
But regional grievances do not justify make a precipitous decision. Turnabout is not fair play, at least not to taxpayers. The fact is that the 1999 special session for Hurricane Floyd relief was hurried, poorly led, and inordinately costly to taxpayers. Hundreds of millions of dollars were rushed into an "emergency" fund only to sit unspent not just for months but for years afterward. As some warned all who would listen at the time, Eastern officials and interests had exaggerated the need and stretched the case for state assistance beyond its proper scope. Some of the problem was haste. Some of it was opportunism. All of it was avoidable.
Now, there is a real risk of just repeated the same mistakes. Some lawmakers supportive of a 2005 package are as much as admitting that current estimates of $300 million-plus in need are on the high side. Few seem willing to distinguish clearly between legitimate funding responsibilities of the state-such as repairing or replacing roads, bridges, and other state infrastructure-and those that, however tragic, are not.
Yet another round of debilitating tax increases is not the answer. Nor is emulating the flawed policies of the past that squandered tax money and (obviously) set a bad precedent for fiscal responsibility. Lawmakers can and should act quickly to tap rainy-day reserves to deal with last fall's rainy days, but they should keep it simple and straightforward.
Hood is president of the John Locke Foundation and publisher of Carolina Journal.
Rumour source: http://www.heraldsun.com/state/6-570172.html
CJ cautioned about the emergency fund: http://www.johnlocke.org/spotlights/1999112224.html
If it were 10%, it would be much easier to calculate.
But don't tell the legislature....
I feel for them- the morons here in Erie County are fighting over increasing the sales tax to 9%.
This while county accountants drive county-paid automobiles back and forth to work and park in free parking spots right in front of the county building
Based on that logic, federal income tax rates should be to 10% across the board.
Guess I'll be buying a lot more using teh intarweb thingy.
They are requiring on-line retailers who market in NC to charge sales tax. (Guess e-bay will be the only way to go.)
The black market activities will increase drastically, too.
When I lived in Brooklyn, there was very little legitimate retail activity occurring. Most purchases, electronics and clothing were made out of the backs of vans and station wagons.
Or South Carolina ...
In 1971, Penna. enacted a "temporary" state income tax. It's still around and they even found the time to increase the percentage.
To paraphrase Reagan, there is nothing more permanent than a temporary government tax.
We know all about "temporary" tax increases here in Massachusetts...
And over there in Utica, they're trying for 9.5%. I luv New York. P.S. I'm in Monroe County and we're not far behind.
There's nothing so permanent as a temporary tax.
LOL People don't still fall for that one, do they?
The black market is alive and well in my area of NC.
Whiskey Tango Foxtrot??? it was still 6% when I left 3 years ago. Am I coming back to a socialist paradise in 2 weeks?
Yes this is a colossally stupid idea.
My boyfriend's hometown is in a border town in MA, 10 minutes away from NH.
Although not sparsely populated, it is devoid of just about any store except for a few local tiny convenience stores.
WHY? Every Masshole does their serious shopping in NH due to sales taxes! I tried explaining this obvious observation to the liberal boyfriend but he doesn't understand.
We have alternatives in Mcdowell County, NC. Drive down to Greenville, SC on big shopping days.
LOL People don't still fall for that one, do they?
It's sickening how many people do. It was just voted in to have our taxes increased by 1/2 percent (how in the hell do you give $1.065 dollars anyway!?!?...oh, you up it to $1.07...I see). Of course, it's for the schools which seems to make it worthwhile since we all know how much the billions have helped the schools since we started the lotto (yeah, right). And of course it's only temporary, they'll end it after a year. Hey - all you dumb*sses that voted "yes" on this...I have some prime land west of Miami I'd just LOVE to sell you.
Governments can never get enough of *your* money. Government programs will always grow, and new programs will always be implemented. There will NEVER be enough money to satisfy the greedy hand of government.
In my county, the sales tax is 8.25%. The town I live in wanted to tack on a 1% sales tax of its own to cover "increasing expenses". They must have seen the light when people like me said "Go ahead". There are 4 other cities bordering on this one - I'll just take my business out of town, and it won't be a hardship to do so.
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