Several prominent groups in town are supporting the proposed sales tax increase for Orange County residents. Sure, it’s a small increase; but all added up, we’ll have an 8 percent sales tax, and that’s just too much.
An 8 percent sales tax is crushing for everyone, not just homeowners. I’ve heard the rhetoric about how small the one-quarter percent increase is, and how it is justified to reach our goals. We’ve had plenty of chances to reach our goals through our exorbitant taxes over the years.
Our neighbor to the north, Virginia, has a 5 percent sales tax and their governor recently stated that, fiscally, they are doing just fine. Delaware has no sales tax.
The argument states that part of this increase in the sales tax will go towards “economic development.†My impression is our elected officials believe in restraining development and highly regulating the process businesses must go through to locate here. They probably do this because they believe their constituents want it that way. Our land will stay pristine.
All you need to do is thin out your rulebook and you’ll get economic development. You don’t need a tax increase to spend on advertisements to lure businesses, only for them to discover there are still mountains of red tape and plenty of hoops to jump through.
It’s simple. If you want to stimulate economic activity, don’t raise taxes! A perfect example is our tax-free weekend. Did you notice how busy the stores were?
Eight percent might be the breaking point for some, who may restrain their shopping or shop elsewhere. When taxes are raised too high, revenue starts to fall. A quarter of a percent may turn out to be a heavy straw; let’s not break the camel’s back.
As Groucho Marx sang in the movie Horsefeathers: “Your proposition may be good, but let’s have one thing understood. Whatever it is, I’m against it!â€
Terri Tyson
Chapel Hill