Sales taxes, fees not the best route
Published January 21, 2016
Editorial by Wilmington Star-News, January 21, 2016.
What's the latest big idea out of Raleigh? Applying the sales tax to museum gift shops.
That proposal, included in a proposed tax bill that was circulating last week around the Legislative Building, would apply the tax to any museum shop purchase and to any sales by a non-profit group to benefit a school or a state agency, such as a state-run historic site.
Exempt would be sales at concession stands in a high school's stadium. One gathers that the Honorable Legislators who drafted this bill don't go to museums very much but they do watch the home game.
This is sadly typical of the nickel-and-diming of the Tar Heel taxpayer that our elected leaders have been foisting on us.
Over at the DMV office, the cost of an eight-year driver's license has gone from $32 to $40. The motor vehicle registration fee has gone from $28 to $36.
Community college tuition is going from $72 to $76 per credit hour for in-state residents. For a full-time student -- who may be going to a community college because he or she can't afford to attend a state university yet -- that charge adds up.
The fee for a medical test for newborns, which all new parents are required to pay, is up from $19 to $24, as of Oct. 1.
Leaders in the legislature have been trumpeting how much they've cut the state income tax. Ordinary taxpayers, however, may find they're putting all that windfall (and maybe a little more) into new sales taxes and fees. We've noted, however, how sales taxes now apply to charges on auto and appliance repairs.
And with the current crowd in Raleigh, it looks like we can expect more of the same. Earlier this month, the legislature's Revenue Laws Study Committee held a hearing on ideas to improve the state tax code.
The Honorables called on only one set of experts -- from a conservative leaning Washington think tank called the Tax Foundation. The Tax Foundation's gurus basically told the Honorables what they wanted to hear: that North Carolina is doing great, but we're going to have to broaden the sales tax if we want to catch up with South Carolina and Mississippi.
One Tax Foundation spokesman suggested more sales taxes on services -- along as (according to one news account) they don't tax "service-related transactions between businesses."
In other words, tap ol' Joe Sixpack again. He shouldn't be spending so much on beer.
Our leaders feel toward the income tax the way vampires feel toward crosses and Baptists toward pole dancing. Their regard for sales taxes approaches a religious fervor. It seems clear that at least some of them would like to see North Carolina go the way of Texas and Florida and do without income tax entirely.
As pundits have pointed out, however, those are special cases. Texas has revenues from its oil (or did, until the price per barrel started to plummet). Florida has hordes of tourists that we don't, all paying sales taxes.
As economists have been pointing out to the point of exhaustion, sales taxes weigh heavier on poor and middle-class families, since they tend to squander a bigger chunk of their income on food and children's shoes than on investments.
Sales taxes are also vulnerable to the vagaries of the economy. When times are hard, folks curb spending, and sales tax revenues go down. -- just at the time when the government ought to be spending more to help people and to stimulate business. (North Carolina, of course, isn't allowed to run a deficit.)
All taxes hurt, but the income tax seems to be about as fair a way to impose them as any. The folks currently making our laws seem to have other ideas.
Fees and taxes
? Division of Motor Vehicles fees will increase by about 30 percent, increasing revenue by about $153 million. The change will raise the cost of an eight-year driver’s license from $32 to $40. The standard registration fee for a private passenger vehicle will increase from $28 to $36 starting next July. Some DMV fee hikes have already taken effect.
? Parents of newborn babies pay more for a required screening. That fee increased from $19 to $24.
? Community college tuition increased from $72 to $76 per credit hour for residents and from $264 to $268 for non-residents.
SALES TAX ADDITIONS
Examples of services that will be taxed at your county’s current rate, starting March 1:
? Car repairs
? Oil changes
? Flooring installation
? Kitchen remodeling
? Appliance installation
? Service contracts on things like computers
What won’t be taxed
? Home repairs where the contractor isn’t selling materials
? Advertising
? Veterinary services
? Pet care
? Lawn mowing
January 21, 2016 at 11:54 am
Richard L Bunce says:
Just like that progressive bastion Washington State... no income tax.
January 21, 2016 at 5:06 pm
Norm Kelly says:
Moving from an income tax to an economic participation tax such as a sales tax is the right and logical direction. Instead of penalizing producers - those earning a living - it's time we started taxing those who willingly/voluntarily participate in the economy. For those lefties who don't understand that statement, it means moving more toward sales tax and less toward income tax.
as long 'as (according to one news account) they don't tax "service-related transactions between businesses."' Wonder why this statement may have been made? Simple. But obviously an explanation that is missed by liberals. Liberals believe businesses simply pay taxes and call it quits. Liberals believe that they can raise business taxes all they want and it has zero effect on either the business or the economy. The facts tell the lie to this lib belief as well. Facts destroy every scheme of the left!
When a government entity implements or raises ANY tax on a business, what exactly does that business do with that added cost of doing business? The absolute ONLY thing that any business can do. They pass that additional expense to their customers. Who pays this additional tax in the end? Consumers! That means people like you & me. Though I'm beginning to figure that there aren't very many of 'you' that are like 'me'. Cuz most of you are way too liberal to be anything like me! Too bad! I'll pray for you. As opposed to libs who want to prey on people like me! I know, libs are offended by me reference to prayer!
Oh, come to think of it, businesses do have one other choice when government entities make it too expensive to do business here. Those businesses that can't afford to do business here, don't. This means less taxes paid by business. Fewer people working here. Meaning lib pols simply raise taxes more on the businesses that remain here in order to keep their spending levels up.
This is simple economics people! I know, that's exactly why it escapes libs. They don't understand economics.
(and for all of you who don't understand 'willingly & voluntarily' participate in the economy. think obamacancer, better known as socialized medicine. this is forced participation in the economy. the government has decided that people MUST participate in the economy. anyone who chooses not to participate in this segment of the economy WILL be penalized. see the difference? one group of people choose to participate. the other group of people are forced by the might of the government to participate. sounds like a group of friendly, loving, kindly overseers, doesn't it?!)
