House and Senate Democrats, who have controlling majorities in the legislature, agreed to both measures this week as part of a $980 million tax package to cope with the budget deficit facing North Carolina.
That would be coupled with cuts in state spending, but Democratic leaders say the tax increases are needed to avoid more devastating cuts to education and social services.
The sales tax increase would be paid in small increments whenever people make a purchase. But when tax time rolls around next year, N.C. residents would be forced to calculate the taxes they owe the state and then add an additional 2 percent.
“I'm not making ends meet as is. I'm at the point where I'm cutting out necessities now,” said Jill Kelley, who works for Wells Fargo in uptown Charlotte, adding that she's even started skipping lunch at work.
Thursday, July 23, 2009
“They even found a way to tax taxes.” in N Carolina
Politicans always worry about Government budgets. Sure would be nice if they took a little time to worry about family budgets.
Posted by Ben Cunningham at 5:28 PM