Reading Time: 1 minute
The Daily News, Jacksonville NC: “Tax-code reform can prove costly
DAILY NEWS STAFF
Guess what they’re talking about in Raleigh once again.
If you said ‘taxes,’ move to the front of the class.
According to The Insider, a state government news service, people from Gov. Mike Easley’s and House Co-Speaker Richard Morgan’s staffs have gotten together to talk about the North Carolina tax code. Some folks on the state Senate staff are also talking about looking at the tax code.
There’s talk of what to do about two ‘temporary’ taxes that are supposed to come off at the end of next June – the surcharge on the top income tax bracket and the half-cent sales tax that were adopted in 2001. The expiration of those taxes could result in a hit of about $500 million to the state treasury.
But let’s remember, that also means that North Carolina taxpayers would have about $500 million more in spending money.
Other talk surrounds a possible increase in the cigarette tax.
Then there is talk of a much broader tax code rewrite. One suggestion would have the state apply the sales tax to services. Under one scenario of expanding the sales tax to services, the overall tax rate would b”