The Republican who introduced a bill that allows municipalities to offer a .25¢ sales tax exposes the folly of the GOP tax cuts over the last few years and the negative impact they’re having on North Carolina’s most struggling communities. Instead of providing investments in infrastructure and education, the GOP insists on continuing of offer tax cuts that have disproportionately benefited corporations and high earners. That may be good for the wealthy, but it’s been bad for the parts of the state that are struggling.
As Rep. Stephen Ross says in the N&O, “It’s important to consider how many towns have suffered losses in North Carolina from decline home values, closing manufacturing plants, and loss of revenue streams like privilege tax.” Almost half of North Carolina’s 100 counties are losing population. Declining population means declining demand for property, leading to a downward spiral for property tax revenue, the primary source of revenue for local government.
Back when Republicans decided to cut the privilege tax, critics warned of the hit to municipalities. Republicans denied that the loss of revenue would be significant and said, besides, towns could offset the loss by cutting spending—like poor towns are flush with cash. They were wrong. The loss of revenue has been significant, especially as the state has cut its budget for public schools and services.
The poorest counties have been stripped of sources of revenue, leading to rising tax rates that discourage economic development. Now, they are asking to institute a regressive tax that will probably transfer resources from the pockets of rural residents to the coffers of urban counties where much of the retail is located. They may need the sales tax to fill short-term needs for revenue, but they need serious investments from state government if they’re going to stanch the bleeding.
When Roy Cooper talks about a budget with vision, he’s talking about investments that will help North Carolinians who need a boost. Instead, Republicans have boosted the people who are already doing well. The sales tax that they’re requesting will likely see declining revenues as retail leaves and population declines. The people in those small towns don’t need taxing options nearly as much as they need leaders with visions and plans.
Thomas Mills is the founder and publisher of PoliticsNC.com. Before beginning PoliticsNC, Thomas spent twenty years as a political and public affairs consultant. Learn more >
Nobody, including Mr. Mills, gets the main point of this process, beginning with the huge income tax cuts for the wealthy (more are coming this year): by “allowing” municipalities and counties to levy a .25-cent additional sales tax, the Republicans will be able, next year, to point at local elected officials who do so — mostly good-government Democrats — and screech “See, we cut your taxes and the Democrat communists raised them on you.”
Since most municipalities, even small ones, are governed by Democratic majorities, this is one of the many ways the GOP plans to take over local offices as they did the state, the Congress, and the White House. The other way, of course, is forcing district elections on municipalities and counties, and they have done with Buncombe County and now plan to do to Asheville. In fact, here in Asheville, every citizen gets to vote for all seven Council candidates: 3 every two years, and the mayor in alternate elections. Under the GOP legislation, every resident will be allowed to vote ONLY for a single council candidate representing his/her constituency, and the mayor every four years. So instead of having a stake in the entire Council and its actions — and the ability to influence them — “voters” will get a stake only in their community, further dividing the city into factions.
It’s all part of the long-term ALEC-based, 50-year plan that the Republicans have been devising and carrying out, step by step.
Don’t forget the stealth candidates for boards of education: that began in 1982.
The previous administration of McCrory aimed to create in North Carolina the transient tax methodology of Florida. Fees and Fines were pushed upwards. These charges were most aimed at the working class. Further damage to the economic wellbeing of the state was done by HB2. I’m told there are no motion pictures or tv shows shooting in NC anymore. Certainly whatever there is left of that industry is very damaged.
The continuing lifestyle policing and legislation based on protestations of ignorance when it comes to marijuana disallows replacement of tobacco for the typically small farms of NC works well at keeping people in the state poor & desperate.
Decriminalizatoin is a a cruel joke. Police continue to devote by my estimate a third of their time to chasing down marijuana growers, distributors or sellers. The prohibition of marijuana seriously damages the overall society. It is entirely based on the desire to hurt those who prefer the lifestyle and folkways that accept the use of marijuana. All those imprisoned for marijuana are political prisoners.
Use of bonds instead of taxes enriches further those who ought more correctly simply pay taxes appropriate to their benefits give by the majority to the treasury.
I can point to an alternative to Finance Banking which that is a dramatic innovation well worth imitation, that being the Bank of North Dakota that operates as a utility instead of parasitical disease sucking the working people dry.
I’v just had the most amazing idea! Since the republican campaign strategy is to appeal to the electorate’s senso of injury and injustice over how bad off they are, obviously making them even worse off will make the republican’s approach even more appealing. Could people really be that stupid? Sure would appear so witness the continued support of Trump and the republican congress
Trump, Pence, and any White House staff are indeed paying for private counsel out of their own pocket. For Trump that is no problem. Pence started a new PAC a few weeks ago, purpose unclear, but he now intends to use funds donated to that for his hiring of a private lawyer. For Ivanka and Jared, should they need lawyers, they will pay out of their funds, which also would be no problem. But the other White House staff are not generally wealthy, especially some of the younger ones, and some of them may have been witness to events Mueller will wish to know more about. They would be fools to deal with even the most ordinary of conversations without a personal attorney. For those folks, I feel some sympathy. The rest — no way. (FYI, Clinton paid for his lawyers also.)