By: Justin Burr
Sunday, July 5, 2009 — This week House and Senate Republican members discussed the negative effects of some of the countless tax and fee increases in the proposed Democrat budget. If enacted, this “Dirty Dozen” potion of taxes and fees will significantly impact our state’s fragile economy and families who are struggling to make ends meet during this severe recession.
At a press conference in the Legislative building, House and Senate Republican leaders, along with a host of other Republican members from both houses, stated strong opposition to the Democrats plans to balance the budget on the backs of working families and small businesses.
Current proposals would raise $990 million in 2009-2010, $1.3 billion in additional tax revenue in 2010-2011 and over $87 million in additional fees.
The very simple and clear message we are trying to send to the Democrat leadership is that to raise tax rates rather than cut wasteful and unnecessary spending is a recipe for economic disaster during a severe recession and will certainly inhibit critically needed job creation.
Believe me, there are many other tax and fee increases not listed above that the Democrat leadership is proposing to balance their wasteful spending habits with money from your wallet. I will continue to speak out and vote against all of these tax and fee increases.
It’s time for the Democrat leaders of the General Assembly to make the right decisions by cutting the wasteful spending in Raleigh and stop playing with the emotions of the people of this state by threatening to cut a crucial service or necessary job that they depend on in order to push their massive tax and fee package over on citizens of North Carolina.
My legislative telephone number is (919) 733-5908 and e-mail address is Justin.Burr@ncleg.net. Please do not hesitate to contact my office for assistance or if you have any questions concerning the budget process. If you would like to receive this weekly report, send your e-mail address to BurrLA@ncleg.net.
It is my privilege to serve you as your representative in Raleigh.
I hope you all have a very happy and safe 4th of July weekend.
Justin Burr represents Stanly and parts of Montgomery and Union counties in the N.C. House. Contact him at (919) 733-5908 or Justin.Burr@ncleg.net.
The “Dirty Dozen” include:
Estimated Revenue Generated:
2009-2010 2010-2011
Increase Upper-Income Tax Brackets: $256,700,000 $183,100,000
* Jobs “killer” – Employers move to other states
* Disincentive for new economic development
– employers
* Wrong prescription during recession
Increase Sales Tax Rate 1⁄4 cent: $195,000,000 $200,000,000
* Regressive, greatest burden on lower income citizens
* Nondeductible against Federal Income Tax
- $30 million/yr. gift to Washington , DC
Sales Tax on Warranties, Installations, Repairs: $176,200,000 $244,000,000
* Harmful to small businesses
* Burden on consumers who can afford it least
Sales Tax on Digital/Click Throughs: $13,200,000 $17,800,000
* Harmful to economic recovery
* Amazon has threatened to pull out of NC.
If so, we will receive less revenue
* Probably unconstitutional
Sales Tax on Local And Interstate Courier Services: $25,000,000 $91,000,000
* Costs passed on to consumers/small businesses
* FedEx is losing money
* Tax ‘em “coming and going”
Franchise Tax on LLCs: $59,000,000 $131,000,000
* Inhibit growth of new jobs
(most small businesses are LLCs)
* Tax applies even if LLC is losing money
* In many cases, this duplicates property tax
Sales Tax on Amusements/Movies: $23,600,000 $31,600,000
* Amusements/movies are all
business for those in that business
* Regressive, nondeductible
Increase Fees for Deeds of Trust and Mortgages for
Emergency Mgmt Division Use: $1,780,093 $3,560.186
* Fee completely unrelated to Emergency Management
* Why are borrowers singled out for this fee when
those who pay cash for a home pay nothing?
* A person who borrows $10,000 pays
same $9 as one who borrows $1 million
Increase Marriage License Fee: $648,680 $648,680
* Burden on families at the time of life
when they are least able to pay
* Funds Domestic Violence – But it does not tax
those “shacking up” or those married 30 years
who are abusing a spouse or “partner”
* Insulting to newlyweds to presume
they will abuse each other
Radiation (X-Ray) Inspection Fee: $416,282 $813,242
* Increase medical costs
* No evidence of need for new inspections
Electricity Tax: $273,500,000 $337,800,000
* Regressive, nondeductible
* Tax on all electric consumers – residential and business
* Harmful to stressed families in time of recession
Health Insurance Regulatory Fee: $? $?
* Pass-through charge to consumer
* Health care costs are too high
without this additional fee
