Out of Control Policy Blog

Taxpayers to Pay More, Get Less in North Carolina

In unfortunate news for North Carolina taxpayers, the headline for this News & Record story—"N.C. budget: Taxes up, services down"—says it all:

N.C. residents will pay more to run their state government but get fewer services in return under the $19 billion budget lawmakers tentatively approved Tuesday.

Voting along party lines, with Democrats in favor, the House voted 65-52 to approve the measure. The Senate vote was 27-17. Both chambers must vote again today to send the deal to Gov. Bev Perdue. Like those who control the House and Senate, Perdue is a Democrat. But the budget is more than a month overdue because members of the two chambers and the governor could not agree on how to bridge what they described as a $4.5 billion budget gap.

Residents who earn more than $60,000 a year will pay more in income taxes and everyone will pay more in sales taxes. The excise taxes on alcohol and tobacco products also will rise, and retailers will now be required to collect sales taxes on certain purchases made over the Internet.

Despite higher rates, the ongoing recession has depressed business and individual earnings to the point where the state will collect less money. That means public schools, state universities, and health and transportation programs will see budget cuts.

Hmmmm...pay more, get less. Maybe Newsweek missed one in its list of states in danger of following California into the fiscal black hole.

Leonard Gilroy is Director of Government Reform

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Comments to "Taxpayers to Pay More, Get Less in North Carolina":

Lane U. | August 8, 2009, 12:54am | #

This is really annoying news for the North Carolinian's! How can they cope with this challenge they are now facing? But worse here is the benefits given to the employed, the health care is still pending in the Senate and the debate is taking for so long. However, on August 4th, Jack in the Box is giving away two free tacos – all you have to do is download the free coupon from the Jack in the Box website, take it to a participating location, and receive two free Jack in the Box tacos, but only for August the 4th. It's also Obama's birthday, but that isn't the reason why – a lot of fast food restaurants are running free food or severely reduced prices promotional runs, which stimulate business, important during a recession. So, if you want to save yourself payroll loans (though the tacos are cheap) get to Jack in the Box.

ggerg | August 9, 2009, 5:03am | #

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