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To: jern
As recently as four years ago, the state budget ran a substantial budget surplus as state tax payers were given a another state tax refund. All of this happened with the Republicans controlling both houses of the state legislature, the state sales tax at 4.5%, and other taxes and annual fees such as gas taxes, car inspections, and utility taxes significantly lower. After the Democrats took back control of both houses in 2000, the state budget ran up a $1 billion deficit in 2001. The result: sales tax increased to 6.5%, all other state controlled taxes increased across the board (even the first ever state tax on the reception of satellite television). Also, millions of dollars of local tax reimbursements owed by the state to local municipalities were withheld, causing hardship for town and city budgets who relied on the reimbursements. After all of these tax increases and minimal spending cuts, the result was the budget deficit increasing to over $2 billion. Things have gotten so ridiculous that I drive 20 miles across the state border to Virginia to buy all of my groceries/other merchandise (sales tax in VA is 2% lower than NC) and while there, I fill up on gas ($0.15/gallon cheaper in VA:lower gas taxes). Now there's hope as the Republicans recently won control of the state house of representatives. If we can only defeat Democrat governor Mike easley in 2004, we may be able to balance the budget down here in NC again (which is required in the state constitution, by the way). Let's hope!
6 posted on 11/24/2002 8:57:03 AM PST by ctnoell
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To: ctnoell
Likewise in Virginia....Mark Warner (Dem) got in and the budget has zoomed to deficits. His response: Cut essential police force jobs etc. No effort is made to go after the real source of the spending nonsense.
12 posted on 11/24/2002 10:29:56 PM PST by TheLion
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