Your April 3 news article “Lawmakers float more sales tax plans” about Sen. Bob Rucho’s proposed fix for the cut of sales tax revenues to urban areas was very revealing.
Even our Republican legislature seems to recognize cuts to city business fees coupled with loss of revenue from sales taxes might be one bridge too far. Even best-case analysis indicates that urban areas will be forced to add 0.25 percent to existing taxes plus pay the statewide added “service” taxes.
Their unstated but likely planned “sales” tax increases show that loss of state taxable income seriously damages many needed state programs, such as our ability to run a first-rate university system. To add additional “sales” tax for services such as haircuts and dentists is especially hurtful to families with children, many of whom already are hurt due to higher college tuitions needed to make up for “lost” income tax revenues. Much higher sales taxes won’t cover these needs.
A fairer, more logical approach would include again taxing income on a graduated basis and accepting Medicaid payments from the federal government. Tax breaks geared for the rich and big business do not seem to be working well for most North Carolinians, urban and rural.
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