Winston-Salem Journal editorial

Gov. Bev Perdue isn’t helping her anemic voter-approval ratings by pushing some $1.5 billion in annual tax increases, but she is doing the right thing for North Carolina. This state cannot afford to cut public education to the extent that will be necessary without a tax increase of this size.

Approximately 3,400 teaching positions in grades 4-12 and all third-grade teacher assistants will be cut unless the governor and the legislature raise new revenue. Such cuts would be devastating to classroom instruction and to teaching as a career prospect for young people.

No one wants tax increases, but North Carolina must meet its obligations, and our children comprise our most important obligation. We owe them a strong education, one that prepares them for the day when they will maintain a strong economy that both supports their children and the current generation of adults who by then will be in retirement.

If the tax increase inadequately protects education, then the political leadership of this state will, in essence, be turning to our children and saying, “Sorry we couldn’t help you get a better education; we had other priorities.”

This is not acceptable, especially considering that the federal government, with its deficits, and state government, with its sizable debt load, have already placed a huge future financial burden on our children.
The state Senate has the better tax package, one that actually lowers some tax rates. The Senate wants to expand the now very short list of services that are taxed. This is exactly what North Carolina needs to do. It must get its tax system in line with the 21st-century service-oriented economy.

Opinion polling shows that North Carolinians also will support an income tax increase on those making more than $200,000 a year and increased taxes on cigarettes and alcoholic beverages. So long as individual increases are kept within reason, this makes sense.

House and Senate leaders are now negotiating differences between the tax increases approved by each chamber. They must move quickly, because the new revenue is needed by July 1.

There are those who say that the whole $4-billion budget shortfall should be covered by spending cuts. This is irresponsible. Even with the tax increases Perdue proposes, cuts will be made to education and to vital services for children and our most vulnerable citizens.

Prosperity will return some day. Let’s hope it is soon. When it does, North Carolina will need a modern tax system that will be better positioned to weather future economic downturns. The Senate approach is the wiser choice, but the most important thing, right now, is to raise enough new money to keep the schools functioning properly.