Who Really Put a Heavy Tax Burden on the Poor?

April 17th, 2014 by

Raleigh – Harry Reid’s PAC ads claim that Republicans raised taxes for most North Carolinians. I attribute that nonsense to his poor research team. But I then get somewhat confused when I hear Senate Minority Leader Dan Blue, Senate Minority Whip Josh Stein or Senator Floyd McKissick, Black Caucus Leader claim that Republican Tax Reform advantages the rich to the detriment of the poor.

Attached is the voting record of this trio for their 2009 votes to increase the state portion of the sales tax from 4.75% to 5.75% – a 16% increase amounting to almost $1 billion per year. See SB 202, 3rd reading, Section 27.A2. The disabled, the unemployed, the retired and even homeless veterans pay sales tax. This was the answer of these Senators to the 2009 budget.

The same strange phenomenon has occurred in the House. Attached is the voting record of House Democratic Leader Representative Larry Hall, House Deputy Democratic Leader, Representative Michael Wray and Representative Garland Pierce, Black Caucus Leader for their 2009 votes to increase the state portion of the sales tax from 4.75% to 5.75% – a 16% increase amounting to almost $1 billion per year. See SB 202, 3rd reading, Section 27.A2. They also know that high sales tax rates disproportionally are paid by the poor.

In 2011 these same voices called on Republicans to keep this “temporary sales tax increase.” “It’s only a penny” they claimed. Your readers will recall that Democratic leaders demanded this extra 16% increase in the sales tax rate. Our refusal to do so was the reason Gov. Beverly Perdue tried to veto the 2011-2013 budget.

The refusal by the Republican General Assembly to increase the sales tax rate to the high levels of the Democrats and to continue that policy from 2011 into 2013 is part of the total tax reform package. Poor people do better under the Republican plan than under the Democrats’ actions. That is true at every income level.

But these Democrats think we have a very short memory. Senator Harry Reid will waste his money on ads that prove only a demonstrable lie.