Rep. Dale Folwell (R-Forsyth). Speaks of the tax increase package is a capital killing, job killing bill.  In response to a previous question of Rep. Pryor Gibson of what would Republicans propose, Folwell asks what they are supposed to do when they get a copy of the tax bill and are expected to review and vote on it in a matter of hours. Folwell says the proposed tax increases are simply a re-distribution of wealth.  Says the state needs to prioritize the collection of revenue by enforcing the law.  85 percent of job creation is by small businesses. The tax increases are detrimental to small businesses.

Rep Bill Owens (D-Pasquotank) says this is only for this year – revenue has decreased.  Can’t be against the cuts and be against the tax increases.

Folwell and Owens argue back and forth about whether you should put money aside when times are good so there is some there when times are bad (Folwell) or when you have additional money you spend it (Owens).

Rep. Pryor Gibson (D-Anson) says we’ve had 26 debate points so far, he claims he has not mentioned partisan politics.  He has reviewed all the revenue options – $17.6 B is what appropriations is working with.  They can’t manage the cuts – need more revenue.

Federal stimulus explanation offered by Ms. Hammonds-Blank, NCGA staffer, $17.5 is current year’s expected revenue. Same for 2009-10. 

The expansion of government and social programs funded by the one time federal stimulus money will create a shortfall of $1.2 Billion when the money runs out in 2012.  Finance Chair, Rep. Paul Luebke (D-Guilford) explains one reason we need these tax increases is to prepare and be sure the revenue is there for multiple years to continue the expansion of these social programs and expansions created with the stimulus money.

Yes, that’s what they said….today’s tax increases are needed to ensure that programs created and expanded with stimulus money will be funded when the federal money runs out.  And most of those expansions are directed by the strings the federal government has tied to those stimulus dollars.