The most egregious tax and fee increases proposed in the Democratic state budget
July 5, 2009
Last week, House Republican Leader Paul Stam of Wake County and Senate Republican leader Phil Berger of Rockingham County discussed some of the most egregious tax and fee increases in the proposed Democratic state budget. House and Senate members discussed the negative effects of these "Dirty Dozen" taxes and fees on our state's fragile economy and their impact on families.
| The "Dirty Dozen" include: | Estimated Revenue Generated: 2009-2010 | 2010-2011 |
| 1. Increase Upper-Income Tax Brackets: | $256,700,000 | $183,100,000 |
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Submitted by Representative Dale Folwell of Forsyth County, this proposed tax increase is a Jobs "killer" potentially providing incentive for Employers to move to other states. Meanwhile, this proposed tax increase creates a disincentive for new economic development, and is the wrong prescription during recession. |
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| 2. Increase Sales Tax Rate 1/4 cent: | $195,000,000 | $200,000,000 |
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Put forward by Representative Paul Stam of Wake County. This proposed tax increase is regressive, placing the greatest burden on lower income citizens while increasing nondeductible Federal Income Tax equating to a $30 million per year gift to Washington DC. |
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| 3. Sales Tax on Repairs, Installations, Warranties: | $176,200,000 | $244,000,000 |
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Submitted by Representative Nelson Dollar of Wake County, a tax proposal that will be harmful to small businesses inevitably placing the burden on consumers who can afford it least. |
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| 4. Sales Tax on Digital/ Click Throughs: | $13,200,000 | $17,800,000 |
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Presented by Representative Marilyn Avila of Wake County, this proposed tax is harmful to economic recovery. Amazon.com has threatened to pull out of North Carolina, creating less revenue. Furthermore, this tax is probably unconstitutional. |
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| 5. Sales Tax on Local And Interstate Courier Services: | $25,000,000 | $91,000,000 |
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Presented by Representative Darrell McCormick Yadkin County, This tax proposal if created will also be passed on to consumers and small businesses. Companies such as FedEx are currently losing money in this volatile economy. This tax proposal is nothing more than a "Tax em (coming and going) policy" being forwarded by Democrat legislators. |
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| 6. Franchise Tax on LLCs: | $59,000,000 | $131,000,000 |
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Presented by Representative Thom Tillis of Mecklenburg County, this is another tax proposal destined to inhibit growth of new jobs because most small businesses are LLCs. The Tax will further apply to LLC even if the corporations are losing money. Basically, this Tax duplicates property tax. |
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| 7. Sales Tax on Amusements/Movies: | $23,600,000 | $31,600,000 |
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Presented by Representative Hugh Blackwell of Burke County, a proposed nondeductible Tax for amusements and movies, affecting all businesses within this industry, therefore, this Tax will create economic regression within North Carolina. |
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| 8. Increase Fees for Deeds of Trust and Mortgages for Emergency Mgmt Division Use: | $1,780,093 | $3,560.186 |
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Presented by Representative Pat Hurley of Randolph County, a proposed Tax which is completely unrelated to Emergency Management, why are borrowers singled out for this fee, when those who pay cash for a home pay nothing? A person who borrows $10,000 pays same $9 as one who borrows $1 million. |
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| 9. Increase Marriage License Fee: | $648,680 | $648,680 |
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Presented by Representative Mark Hilton of Catawba County, a proposal to increase of the North Carolina Marriage License fee in order to pay for Domestic Violence which may possibly occur within newlyweds homes. This proposed increase assumes Domestic Violence will occur and is insulting to newlyweds presuming they will abuse each other. Additionally, this proposal will place an unnecessary burden on families at the time of life when they are least able to pay. It also does not tax those "shacking up" or those married 30 years who are abusing a spouse or "partner." |
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| 10. Radiation (X-Ray) Inspection Fee: | $416,282 | $813,242 |
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Put forward by Representative Bill Current of Gaston County, an increase in fees for radiology inspections within the medical industry. This proposal will increase medical costs statewide for no practical reason, nor has there been any evidence presented for the need for new inspections within this industry. |
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| 11. Electricity Tax: | $273,500,000 | $337,800,000 |
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Presented by Representative Wil Neumann of Gaston County, a nondeductible Tax on all electric used by consumers - both residential and commercial. This is a utility tax increase in order to fight global warming. However, a recent poll has showed that 82.6 percent of North Carolina voters are against a tax for fighting global warming. This proposed tax is regressive to economic development and harmful to financially stressed families during a time of recession. |
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| 12. Pick Your Own | $? | $? |
"Adoption of a state budget that adequately funds North Carolina's priorities does not require busting the budgets of North Carolina's families and businesses," said Senator Phil Berger. "Now is the time to break the cycle of tax-and-spend policies embraced by North Carolina's Democratic leaders. Legislative Democrats should not expect North Carolina's citizens and small businesses to pay the price for Democratic mismanagement."
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