I ripped the Winston-Salem Journal a couple of days ago for this editorial stating that “North Carolina’s mid-20th-century tax system will not work in a 21st century economy.” The Journal likes the idea of lowering tax rates while raising more revenue with a tax on services.
Red Clay Citizen’s Brian Balfour says “(i)n theory, its a sound idea if implemented properly,” but “unfortunately politicians will be in charge of any such implementation.”
There you have it. Balfour says lobbyists will unleash themselves on the General Assembly to lobby for exemptions, while I maintain that after our representatives will secure the sales tax, rates either won’t go down or will just creep up again. Remember that the Journal noted that “legislature has scrambled to raise adequate revenues even when the economy has been healthy.” The Journal’s logic dictates that it’s because there aren’t enough taxes, not because they spend too much money.
The House, meanwhile, is showing its cluelessness about sales taxes with the bill that just passed committee that could allow voters in Forsyth, Guilford, Wake, Durham and Orange to to raise the sales tax by a half-cent to fund —- of all things —– mass transit. Voters don’t like sales taxes, and they’ve proven it at the polls. Shows you how dense the thinking down in Raleigh can be.
However, there is a sick part of me that hopes a sales takes increase comes to a vote, because it will be so much fun watching the ‘leadership’ here in the Triad trying to justify it.
