The Senate version of the state budget sunsets two temporary taxes: the ¼ cent sales tax and 8% upper income tax. For middle class families like mine, this means a tax saving of about $50 a year. What should I do with this tax windfall? Fifty dollars won’t even buy a good pair of shoes.
No, the Senate proposal is definitely a ‘rich man’s budget’, it does little for folks like me. Ending the temporary taxes like the Senate proposes puts the state into a budget deficit of about $300 million, which means we don’t have money to make capital improvements to roads, schools and green spaces.
Moreover, the Senate budget includes less money for public education, community colleges or health and safety programs. For the average North Carolina family, the tax savings are minimal compared to the impact on the state.
The state should keep the temporary taxes in place until the entire tax system is modernized, they should make the capital improvements necessary to keep pace with growth and fund programs that help families. I can wear my old shoes a while longer.