A Tax Hike Ahead?
North Carolina lawmakers return to Raleigh today with much attention focused on the House of Representatives and their version of the budget for the next fiscal year. Over the weekend, budget writers met to discuss proposed cuts to state services and weigh the option of tax increases to make up additional revenue.
We do not advocate raising taxes in the middle of a recession, but The Jacksonian has put together the following numbers based on projections from the North Carolina Department of Revenue as to the impact of tax increases in sales and income:
A halfpenny increase on the sales tax - most consumers would pay 7.25 percent instead of 6.75 percent - would increase revenues more than $400 million annually. A half-percent increase in the top individual income tax rate - from 7.75 percent to 8.25 percent - would raise up to $140 million.
We do not advocate raising taxes in the middle of a recession, but The Jacksonian has put together the following numbers based on projections from the North Carolina Department of Revenue as to the impact of tax increases in sales and income:
A halfpenny increase on the sales tax - most consumers would pay 7.25 percent instead of 6.75 percent - would increase revenues more than $400 million annually. A half-percent increase in the top individual income tax rate - from 7.75 percent to 8.25 percent - would raise up to $140 million.
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