This week the state House of Representatives approved a $562 million
revenue package that extends, yet again, the “temporary” sales and
income tax hikes first passed in 2001. On “NC Spin” this Sunday, Donna
Martinez points out the
illogical rationale of some legislators, who justified the extensions by
saying the economy has not sufficiently recovered, but then imposed the
8.25% marginal rate on many small business owners, who are the primary
job creators in the economy. North Carolina’s tax situation was also
the subject of Roy Cordato’s mid-week appearance on WTKF’s “Lockwood
Phillips Show.” Cordato’s policy report on reforming the tax system is
available here. One recurring idea in the reform discussion is the positive impact a
Taxpayer Bill of Rights (TABOR) would have on the state’s budget and,
in turn, taxpayers. This week Chad Adams and Joe Coletti attended a
conference hosted by the State Policy Network, at which think tanks
from around the country shared updates on their TABOR efforts. JLF’s
Agenda 2004 notes that if a strict TABOR law had been in place during
the past 10 fiscal years, the state’s General Fund budget would have
been about $2.3 billion lower in FY 2004–05.