NEW DIRECTION FOR NORTH CAROLINA REVENUE

Paul Fogleman,

Members of the House Finance Committee acknowledged that General Assembly leadership is moving to move the state toward consumption-driven revenues. Cuts are made to income tax schedules (couples filing jointly have not tax liability on income up to $17,500). But sales tax fees are being extended to numerous services from home repairs, to service contracts, to market-based sourcing ranging from ATM fees, interest and dividends and corporate-level distribution.

Lawmakers are looking at Tennessee and other states that do not have income taxes for concepts that generate revenue. North Carolina’s budget requires $22.6 billion and that figure will grow by 2 or 3 percent a year as the population and level of services increase.

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