Michael Lindsay: Tax twister

January 4, 2014 

Let me see whether I understand our North Carolina government’s tax reform efforts. I read in the Dec. 28 N&O that the state is increasing the sales tax rate on mobile homes from 2 percent to 4.75 percent and eliminating the tax cap (which was $300 for single-wides and $600 for double-wides). But still on the books will be a $1,500 cap on the sales tax for yachts and jets.

I assume Gov. Pat McCrory and the Republican-controlled legislature think this is good tax policy because they voted for it. But I have a hard time understanding the logic of this double standard. Why give tax beaks to folks who can afford yachts or jets but eliminate tax breaks for folks living in mobile homes? Do they think the jet-set class can’t afford a tax increase while the mobile-home folks can afford a tax increase? I can’t understand it.

Michael Lindsay


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