Does anyone really believe Gov. Perdue’s proposed tax hikes would be temporary? History says no. From the News & Observer:
The governor’s wish list includes a 1-cent increase in the sales tax that would expire Sept. 30, 2010. She also proposed an income tax surcharge on single taxpayers who earn more than $500,000 and married couples filing jointly making more than $1 million. The surcharge would end after two years.
She characterized the increases as emergency measures. A deficit between $1.1 billion and $4.7 billion — depending on the benchmarks used — has left the state looking at deep cuts and tax increases to reach a balanced budget.
North Carolinians are still paying part of tax increases passed in 2001 and characterized as temporary, and Perdue was asked why residents should place more faith in that term now.
“Because I’m governor,” Perdue said at a brief news conference outside the capitol.
JLF fiscal policy analyst Joe Coletti explains the likely impact of the governor’s proposal.
