Kinston Free-Press: Revisions should wait for tax code

Kinston Free-Press

Editorial

An old adage suggests that one shouldn’t shop for groceries on an empty stomach.

Nor should lawmakers try to overhaul the state’s tax code during a recession when revenues are, relatively speaking, scarce.

But that’s exactly what some lawmakers are contemplating as a means of ending the budget stalemate and bridging the current gap.

The other day, the Senate Finance Committee took some time to take a look at some proposals which would vastly change the state’s sales tax code. Currently, sales taxes are charged on most goods. But many services are not taxed.

One example of that is when you go to get your car repaired. You pay a sales tax on your parts, but not on labor costs. …

Proponents of a limited government should be wary of this proposal. While it could be fashioned to be revenue neutral, a lot of groups and individuals pushing for the change are hoping that taxing a broader range of services would result in windfall revenues for the state. …

Take the current economic climate as an example. When broadening the sales tax base is discussed in relation to balancing this year’s budget, it would result in a higher tax burden on the taxpayer.

We find that unacceptable.

North Carolina is currently facing double-digit unemployment. Many who are employed are seeing their hours cut back or their salaries cut.

They have to make do with less. It would be a slap in the face to tell those struggling that they must pay more in taxes when they’re already struggling to balance their own family budgets. …

Click here for the full editorial from the Kinston Free-Press...

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