The Daily Tar Heel
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The Daily Tar Heel

A taxing debate: County sales tax referendum should be reconsidered

Orange County legislation to hold a referendum to decide whether to impose a one-quarter cent county sales-and-use tax hit a wall of well-deserved dissent at a hearing June 1.

County Commissioner Steve Yuhasz said the tax could be dedicated to education, debt service and economic development.

At a time of budget cuts and tough revenue projections, it is easy to understand the motivation behind such a proposed increase. Especially when county commissioners are facing the prospect of a property tax increase next year.

But the proposal causes several reasons for concern.

First of all, the county residents voted down a tax increase in a referendum just a few years ago.

It simply doesn’t make sense to bring another referendum to these same residents so soon.

What’s more, the sales tax itself is regressive with respect to income.

By placing no extra burden on the wealthy, all residents will be affected equally — and unfairly — by the increase. 

Our residents are already facing their own financial burdens, and it doesn’t seem right to make them pay higher taxes.

And further, it could hurt local businesses.

Should the county commissioners hold this referendum, they should take care to avoid unduly influencing the vote.

The issue of spending tax dollars to get more tax dollars would raise the question of how far is too far when it comes to elected officials dipping into the public purse to educate voters about the referendum.

County governments hold the authority to educate residents using public money, but they should keep in mind that they cannot actively lobby for passage of the new taxes.

Systemic public debate is certainly needed.

But the current proposal fails in fulfilling the broader purpose of equality in providing local services.

Orange County residents who feel strongly about the tax increase should be sure to contact their representatives and make their voices heard.

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