Perdue proposes three-quarter cent sales tax raise

Gov. Bev Perdue’s proposed sales tax increase is facing criticism from Republicans who say the governor has not outlined enough of the details.

Perdue has proposed raising the state’s sales tax three-quarters of a cent — which she claims could give relief to schools and universities struggling in the aftermath of education spending cuts.

“It may not be the popular thing to do politically, but it is the right thing to do for our children, and the future of our economy,” Perdue said in a speech in Charlotte last week.

Perdue, who is preparing for a re-election campaign, has called the proposed increase temporary, but has not yet defined what temporary means.

Jon Romano, Perdue’s spokesman, said in an email that he was concerned about the current level of funding to N.C. K-12 grade schools, community colleges and public universities.

He said the revenues generated from the tax increase could help schools and universities.

“Unless we act, the problem will get even worse next year,” Romano said.

But Perdue’s proposal has been met by stringent opposition from state Republicans and policy makers.

Terry Stoops, director of education studies at the conservative John Locke Foundation, said the think tank disagrees with raising the sales tax and is worried about the lack of a specific time-table.

“That’s the most disturbing part about this, there is no sunset for these taxes,” he said.

He said this is a political move, and there is no direct correlation between education spending and student outcomes.

“It is unclear how much of the money generated will go to higher education, community colleges or K-12 public schools,” Stoops said. “These entities think they will be receiving a windfall (but) the devil is in the details.”

Rep. Paul Stam, R-Wake, said a tax increase would not be a smart move in the midst of a recession.

“There is not a chance in the world it will get passed,” he said. ?“She is using this proposal as an opportunity to fantasize about more state spending. There is nothing temporary about it and she will perennially demand higher taxes.”

But Rep. Deborah Ross, D-Wake, said protecting public education is important in the struggling economy.

Ross said the increase could temporarily solve the state’s financial woes.

“It’s a shell game: the legislature is cutting money from the local school systems, universities and community schools and not taking responsibility.”

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