Sales tax estimates yield dilemma for theives, oops I mean legislators

January 22nd, 2010 by NC Tea Party Staff Categories: Archives 6 Responses

Well folks now we must focus on the happy spenders in our state and local governments. They are at it again, tax and spend liberals that are out of control and actually affect us more than the federal government. These little stinkers need to be removed so they are forced to go out and get real jobs where they can experience their own laws in action. They have already started taxing services, see here and now they want to do more of the same. Let’s start voting these people out of their office and replace them with Tea Party minded folks who will cut services to the bare minimum, lower our tax rates, and remove themselves from office after 1 or 2 terms at the most.

Where do you think our congress men and women cut their teeth? All their habits and corruption are formed locally and then they just move right on up the chain. The Tea Party is going to focus our efforts on local and state elections so as to inform the folks of North Carolina what is happening in our backyard and maybe through intense pressure we can oust these losers and take back our state while keeping more of OUR money in the process.

Here is the article that needs to be read:

RALEIGH — As revenue from the state and local sales taxes dwindles in a down economy, expanding the levy to cover services is getting increased scrutiny as a way to generate millions of dollars in new revenue. Members of a joint Senate-House Tax Reform Committee established by the General Assembly are being given glimpses of just how much the state could bring in by taxing everything from carpet clean- ing to haircuts to athletic events to legal services and much more. For example, placing a sales tax on dances, dog shows, movies and sporting events — some of which are already subject to a smaller privilege tax — could bring in an estimated $85 million to state and local coffers. Bringing landscaping, exterminating, carpet cleaning and security services under the levy would raise nearly $254 million. Pet grooming, horse training, hair-cutting and the like would add nearly $36 million, while a tax on service contracts and warranties, installations and repairs could generate $406 million. The largest windfall, however, could come from a sales tax on professional services — doctors and dentists, $700 million; lawyers, $359 million; accountants, $173 million; computer services, $327 million. The numbers were extrapolated from 2002 U.S. Census data, consumption figures from the Bureau of Economic Administration and other sources. The extracted revenue projections are based on a state sales tax rate of 4.75 percent (not counting a recent temporary 1 percent hike) and a local sales tax rate of 2 percent. “The numbers are solid,” said General Assembly fiscal researcher Sandra Johnson, who performed the analysis. “We just wanted to provide the committee with a bird’s eye view of the subject.” It will be up to the reform panel, made up of members of the House and Senate finance committees, to decide what to do with the data. In addition to studying sales taxes, the group is looking at the way North Carolina taxes personal income and corporate income. The panel’s recommendations for changing the state’s tax laws aren’t expected before May, when the full General Assembly convenes on Jones Street. “We are looking at the details in a way no legislators have before,” said Durham Rep. Paul Luebke, who is a senior chairman of the House Finance Committee. “Another important factor for this committee is that, anything we do, we want to make as bi-partisan as possible.” Sales taxes now generate 28 percent of the state’s revenue. In 1970, the figure was 31 percent. North Carolina imposed its first sales tax back in 1933, but over the decades the state has seen the sales tax base shrink because of changes in what people are buying, tax exemptions — now running into the hundreds of millions of dollars — and cross-border and online shopping. Remedies being studied include raising rates, cutting exemptions or looking for ways to expand the base. Hence, the re-newed focus on services, which generally have not come under the sales tax levy. Research by the Federation of Tax Administrators in 2009 found that five of the 45 states that levy a sales tax impose the tax on fewer than 20 services. Article from Lee WeisBecker who writes for the Triangle Business Journal.

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    Sales tax estimates yield dilemma for theives, oops I mean legislators | North Carolina Tea Party

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  5. Ashley says:

    Ooooooh, I forgot one thing! I can’t forget to mention that with the fair tax we would see WHEN (notice I didn’t say if) the government raises our taxes. They can’t hide behind anything. No tax breaks for the wealthy, or so and so, or anyone! How’s that for transparency, Mr. Obama?

  6. Ashley says:

    I agree! I was notified by my employer this month that my paycheck would be a little lower due to higher taxes. Higher taxes…what? for the middle class? Yes! How I would love the Fair Tax. The middle class can’t afford lawyers to get the absolute best tax return, we can’t afford to have an offshore account, basically, we can’t afford to cheat the system. I would love a fair tax where the wealthy are paying taxes on those yachts and cars and not their reported income. The middle and lower class suffer the way the system is now but a fair tax would level the field. The fair tax plan even has plans in place to help the lower income families. (Not to mention, all those illegal refugees would be paying taxes this way!) I understand why the government isn’t in favor of that but shouldn’t EVERY average joe out there?