This week the House put together their spending program for the next two years. Then they put together a tax and fee plan to support it.

The House considers the tax and fee package as an amendment to SB 202, that includes all of the spending.  The debate begins on a $823 m tax and fee hike in 2009-10 and over $1 b in 2010-11.

Folwell asks Finance Chair, Rep Paul Luebke (D Guilford)  what growth is expected for the next two years?  Luebke says it won’t be enough to sustain what the state needs to do so these tax increases are necessary.  Folwell argues that contrary to what has been claimed in prior years that the goal is to expand the tax base resulting in a lower rate for more.  Rather this budget increases the tax base and increases the rate.  Folwell says this bill is a job killer, reducing the attraction to business.  Laws in place are not being enforced that would produce revenue.  The state’s economy cannot grow with tax increases.

Rep Earl Jones (D Guilford) asks if Folwell has ever heard of the Great Depression and the New Deal and exchanges barbs with Folwell. 

Finance Co-Chair Rep Jennifer Weiss (D Wake) says these tax increases will ensure that everyone pays their fair share.  She says this package broadens the tax base, makes it fairer and she hopes someday maybe they can lower the rate.

The debate goes on and on with budget supporters claiming more revenue is needed to preserve social services for the least of us, educate children and employ teachers, while those against the tax increases say it will harm the economy, kill jobs and stifle the recovery of the state’s economy.  Questions of priorites ($ for Apple, Wachovia, museum in Aurora is worth rasing taxes for?)  and what the real shortfall numbers are.

After all, hasn’t the governor (because of a constituional amendment to balance the budget) already started us well on the way to smaller government and necessary cuts.  We’re pretty far along already.

Seems like everyone wants to weigh in on the tax and fee package. Looks like most members have thier laptops on the floor.  Email addresses are available on the NC General Assembly website.

How do you feel about paying $1.8 B more in taxes and fees over the next two years?