Governor Perdue Should Veto Her Tax Plan

Berger Pledges Support for Veto

Governor Perdue unveiled an original tax increase proposal of more than $500 million in March relying mostly on new taxes on cigarettes and alcohol. This came as a surprise to many since in her campaign for election she stated in October of 2008, “I don’t believe you can raise taxes in an economy with folks struggling the way they are.” (“First task: Fill N.C. budget hole,” News & Observer, 10/23/08)

In June of this year, Governor Perdue again changed her mind and began calling for a $1.5 billion tax increase embarking on a tour across the state to sell her plan to the people of North Carolina, however it was not well received.

On July 2, while speaking to reporters Governor Perdue said that she did not care what taxes legislative Democrats raised in the state budget. A spokeswoman later clarified that statement. (“Perdue: Indecision costs $5 million a day,” News & Observer, 7/2/09)

By July 7, Governor Perdue offered her own tax plan to legislative Democrats which included “temporary” taxes characterizing it as the only option saying, “This is the only pathway I know that protects the core services and public education in North Carolina.” (“Perdue: $1.6 billion in taxes only option,” Under the Dome, 7/7/09) Later, a spokeswoman characterized her plan as a menu of options.

Yesterday, after legislative Democrats released their tax plan, modeled after a number of items on the Governor’s menu Perdue expressed her displeasure with the announced Democratic proposal for tax increases saying in a statement, “I am once again calling upon the General Assembly to do what they were sent to Raleigh for — to make tough decisions in tough times. From what I’ve seen so far, I remain very concerned about the budget’s impact on the K-12 classroom. Find a way to protect public schools and the core services of safety and public health, period. The clock is ticking.” (“Perdue: Budget doesn’t protect schools,” Under the Dome, 7/22/09)

Today, it appears that Governor Perdue is threatening to veto her own tax package because legislative Democrats have chosen to include an increase in income taxes. She said, “I have spoken with the President Pro Tem and the Speaker today and told them that I would not support a budget with an income tax increase on North Carolina’s working families. I reemphasized the need to protect public schools.” (“Veto threat?,” Capital Beat, 7/23/09)

Senate Republican Leader Phil Berger (R-Rockingham) made the following statement:

“Governor Perdue is right about one thing; tough decisions need to be made. Unfortunately, Governor Perdue has failed to provide the leadership needed at this time. The Democratic tax proposal is her tax package. She provided the menu and asked legislative Democrats to pick which tax increases they would support. Now she’s dissatisfied with the result. I agree that Governor Perdue should veto her tax package just as I agreed with her first position that now is the wrong time for any tax increase. I will vote to sustain her veto. Then, maybe we can do what’s right for North Carolina – cut wasteful spending.  We can do that and protect education, public safety, and services to the disabled, sick, and elderly. Neither the Governor nor legislative Democrats will do that; because that will require a real tough choice for politicians – saying NO to special interests.”

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