More on Easley and the sales tax
Note: Audio link below.
This post and
this story regarding Easley talking about keeping the remnants of the temporary sales tax on the books has stirred some e-mails, phone calls as well as comments on other sites.
In summary: folks don’t seem to be happy with the idea. There is a strong sense that Easley is suggesting the state break a promises that has already been bent somewhat.
He was conscious of that yesterday when he spoke, saying the state had committed to reducing its share of the sales tax down. If nothing else, this whole episode will contribute to a big old chorus of “yeah, right” (said with skepticism) the next time anyone brings up the idea of a temporary tax.
“We ought to try to keep that commitment unless we find a better way to give the money back to the people,” he said.
He spoke for about three minutes regarding the sales tax. The original question was whether he thought the state budget could balance next year while still phasing out both the sales tax and the upper-end income tax.
Click here to listen to his full answer.
Notice that one of the things he suggests putting the extra sales tax money toward the EITC, or a state-level Earned Income Tax Credit. That would create an interesting dynamic, with one tax break being funded by what amounts to an off-setting tax hike.
Update: More from an e-mail from Phil Berger:
In response to Governor Easley’s comments regarding his desire to keep the quarter-cent sales tax increase that is slated to expire next year, Senate Republican Leader Phil Berger (R-District 26) released the following statement:“One of the lessons from the recent election was that voters do not like it when politicians say one thing and then do another. Governor Easley and legislative Democrats have repeatedly broken promises about the end date for "temporary" tax hikes passed in 2001. Now we are being told that the Governor wants to again deny North Carolina's families promised tax relief.
“The Democrats' failure and refusal to keep their word is apparently driven by an ongoing desire to continue to grow state government at rates that far exceed the rate of inflation. It is time to reform our state budget process and exercise fiscal discipline; the first step will be to keep the promise to end these "temporary" taxes. The Governor and legislative Democrats should control spending instead of continuing their non-stop raid on taxpayers’ wallets.”