Gov. Mike Easley’s proposed $18.9 billion budget does not provide enough relief to taxpayers who made it possible. The governor could have returned the $1.1 billion in overcollections to taxpayers without jeopardizing future fiscal health. This would include ending the half-cent sales tax and 8.25 percent income tax rate set to expire in 2007, and providing a temporary quarter-cent sales tax refund. Removing the county burden for Medicaid would also ease the fiscal pressure local governments face to raise taxes to pay for schools and roads.
by Joseph Coletti
Senior Fellow, Fiscal Studies, John Locke Foundation