To counter the projected $4 billion shortfall for the state’s budget, the N.C. House is today considering proposals to increase the income tax on residents making more than $500,000 a year from 7.75 to 8.25 percent, and raising the sales tax by a quarter-cent — adding installations, repairs and other services to the sales-tax roster. The tax proposals, as reported today in the News & Observer of Raleigh, would be accompanied by additional program cuts in education and social services.
The proposed changes to the budget delivered by the Senate in S.B. 202 came last night in a private meeting by the Democrats, who control the House, according to the N&O. Proposed cuts in services to the mentally ill and to the state’s students through increased class sizes could potentially be offset by the increase in taxes, which would need a 61-vote majority to pass the House.
— Nelda Holder, associate editor