Tuesday, January 25, 2011

Perdue softening on temporary taxes

I thought I detected a softening yesterday from the governor's office on the temporary tax increases North Carolina put in place two years ago to help balance the budget.

Those taxes – an extra penny sales tax and income tax surcharges on people making more than $100,000 a year — raise more than a billion a year. They're set to expire June 30, and Gov. Perdue said last month she wouldn't include them in her budget.

But yesterday one of her press officers said the governor would "prefer" not to extend the sales tax. And today The News & Observer spoke to Gov. Perdue herself:
While Democratic Gov. Bev Perdue has ruled out a tax rate increase, she said Tuesday that she is still giving some thought to proposing in her budget the extension of the $1.3 billion in temporary taxes passed by the legislature in 2009.

Perdue has in recent months given mixed signals about her willingness to propose extending the temporary tax increases, which is strongly opposed by the new Republican legislature.

But at a news conference Tuesday, Perdue said she might be willing to consider it, if the alternative is massive cuts to public education.

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