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There have been more than a few articles in the N&O and Charlotte Observer about the coming budget crisis, how NC got there and who is going to pay for it.
Read the articles, but the Republican game is make the lower quintiles pay $100+ more and the millionaire pay $10,000 less.
The NC General Assembly never addressed the issue of what pot the money to increase teacher wages was going to come from and adjourned without protecting teacher aids and increased the state tax on a mobile home from 2% or a maximum of $300 to 4.75%, no limit, yet left the 3% sales tax on yachts unchanged while eliminating the estate tax.
I do get the drift. It sounds like a Kay Hagen advertisement.
The estate tax affects poor and rich alike. If your parent dies and wills the place to you, you don't take control of the property until the death (estate) taxes are paid. If you don't have the money, the state places a lien on the real estate. It's a huge inconvenience and intrusion by the government at a time when you don't need it. The federal government phased it out years ago. It's time for NC to let it go too.
NC does not have a yacht tax. It has a boat tax that is paid on all boat sales. It's capped at $1500. It's pretty much the same as other vehicle taxes in this state like automobiles. 3% of sales and capped at $1500. I paid it when I bought my boat. IMO, they should eliminate the tax all together.
$300 taxes on a home that is financed by a 30 year mortgage seems like an amazingly low number. It should be increased.
I do get the drift. It sounds like a Kay Hagen advertisement.
The estate tax affects poor and rich alike. If your parent dies and wills the place to you, you don't take control of the property until the death (estate) taxes are paid. If you don't have the money, the state places a lien on the real estate. It's a huge inconvenience and intrusion by the government at a time when you don't need it. The federal government phased it out years ago. It's time for NC to let it go too.
NC does not have a yacht tax. It has a boat tax that is paid on all boat sales. It's capped at $1500. It's pretty much the same as other vehicle taxes in this state like automobiles. 3% of sales and capped at $1500. I paid it when I bought my boat. IMO, they should eliminate the tax all together.
$300 taxes on a home that is financed by a 30 year mortgage seems like an amazingly low number. It should be increased.
Why exactly should we have a sales tax of 3% on boats and 4.75%-7% on everything else? And why should the 3% sales tax be capped on the first $50,000 of value, when the average Grady white sells for $125,000 and the average Jarrett Bay goes for $1 million? Asking how much revenue is the state passing up here, and what is it getting back in return are reasonable questions.
I do get the drift. It sounds like a Kay Hagen advertisement.
The estate tax affects poor and rich alike. If your parent dies and wills the place to you, you don't take control of the property until the death (estate) taxes are paid. If you don't have the money, the state places a lien on the real estate. It's a huge inconvenience and intrusion by the government at a time when you don't need it. The federal government phased it out years ago. It's time for NC to let it go too.
NC does not have a yacht tax. It has a boat tax that is paid on all boat sales. It's capped at $1500. It's pretty much the same as other vehicle taxes in this state like automobiles. 3% of sales and capped at $1500. I paid it when I bought my boat. IMO, they should eliminate the tax all together.
$300 taxes on a home that is financed by a 30 year mortgage seems like an amazingly low number. It should be increased.
Your argument against estate taxes does not hold water. Only the wealthy paid the tax. Prior to the estate tax repeal, NC's exemption amount was tied to the federal one, which means that for deaths in 2012, estates with a total value of up to $5.12 million ($10.5 for a married couple) were exempt from NC and federal estate taxes.
The boat tax and the car tax are lmited so the wealthy do not have to pay the same %on an $80K Mercedes as someone pays on a pick up truck, same with the boats/yachts.
You can cut taxes all day long, however NC finds itself in a structural deficit because they cut taxes far below expected expenditures and will at some point next session increase the sales tax to cover the deficit.
That is basically transferring the tax responsibility from the wealthy and corporation to another group, the lower three quintiles, a group who already pays more as a percent of income in total taxes than the top two quintiles.
Why exactly should we have a sales tax of 3% on boats and 4.75%-7% on everything else? ...
You don't. The similar tax for automobiles is also 3% with the $1500 cap. Both are considered vehicles. Furthermore, unlike most items, you continue to pay property taxes, fuel taxes, and yearly registration taxes. Your reasoning suggests that we raise the tax on boats & automobiles to 7% with no cap. Imagine what that would do to the economy.
Just focusing on the boats for a moment. There are 392,566 boats currently registered in NC. The vast vast majority of them are not yachts. NC is #10 in the nation for registered boats. The bulk of these boats are small pleasure and fishing boats that generate a huge amount of money for the economy. There are also a large number of registered commercial fishing boats that operate on the coast supporting a vast seafood industry. There are also several factories in NC that build boats.
The insane suggestion to impose the maximum sales tax on boat sales would destroy this industry, economy and state attraction. It would hit the economy on the Outer Banks and coastal cities pretty hard. Marinas, dry docks, repair shops, etc. on places like Lake Norman would take a bad hit. It would hurt people's access to the excellent marine resources in this state.
It's one of the dumbest suggestions that I've seen come out during this political season.
Your argument against estate taxes does not hold water. Only the wealthy paid the tax. Prior to the estate tax repeal, NC's exemption amount was tied to the federal one, which means that for deaths in 2012, estates with a total value of up to $5.12 million ($10.5 for a married couple) were exempt from NC and federal estate taxes. .....
Amazing that you don't consider someone with a $10.5 million dollar estate to be wealthy. It's more broken logic from those who think there is a vast conspiracy being committed by the GOP. There is no justification for a death tax, not matter who it hits. Like I said earlier, the feds got rid of it, it's time that NC did too.
Quote:
Originally Posted by mlhm5
The boat tax and the car tax are lmited so the wealthy...
Absolutely wrong. This tax hits everyone. See my previous post about boats.
Let's remember that if you purchase a $80,000 Mercedes, you are still paying property taxes on the full value of the vehicle each year. You are also paying more fuel tax, and there is a yearly registration fee as well. You certainly are not getting any favors from the state if you own one.
Only the wealthy paid the estate tax because there was no NC tax on any estate left to an individual whose value was less than $5.1MM or $10.5MM if the estate was left to a married couple. Furthermore only the amount above the $5.1 or $10.5 was taxed.
When you buy a $40K pickup your tax is 3% but is limited to $1500, so most people buying a Fords, Chevys, etc. never go above the $1500 cap, however if you buy an $80K Mercedes or Jag or BMW, your tax limit is $1500 instead of 3% of the purchase price which would be $2400.
NC walking away from easy money. Even FL taxes the entire amount at 6%.
But Florida doesn't have an income tax. I'd be glad to take that deal. I only have 1 boat and will probably never buy another, but I have to pay NC income taxes every year.
Certainly that is a much bigger gift to the wealthy than the cap on vehicle tax in NC. Then again, there is that facts & "logic" thing again.
Last edited by WaldoKitty; 09-22-2014 at 11:18 AM..
You don't. The similar tax for automobiles is also 3% with the $1500 cap. Both are considered vehicles. Furthermore, unlike most items, you continue to pay property taxes, fuel taxes, and yearly registration taxes. Your reasoning suggests that we raise the tax on boats & automobiles to 7% with no cap. Imagine what that would do to the economy.
Just focusing on the boats for a moment. There are 392,566 boats currently registered in NC. The vast vast majority of them are not yachts. NC is #10 in the nation for registered boats. The bulk of these boats are small pleasure and fishing boats that generate a huge amount of money for the economy. There are also a large number of registered commercial fishing boats that operate on the coast supporting a vast seafood industry. There are also several factories in NC that build boats.
The insane suggestion to impose the maximum sales tax on boat sales would destroy this industry, economy and state attraction. It would hit the economy on the Outer Banks and coastal cities pretty hard. Marinas, dry docks, repair shops, etc. on places like Lake Norman would take a bad hit. It would hurt people's access to the excellent marine resources in this state.
It's one of the dumbest suggestions that I've seen come out during this political season.
You've not explained to me why the tax is capped for luxury goods. The bulk of the "small pleasure and fishing boats" paid the tax on the full value of the boat. Why cap that for the several hundred thousand dollar center console or multimillion dollar yacht? Your telling me raising the tax from $1500 to $6000 on a $200K boat will cripple the industry? And that the same yahoo who drops 4 million on a jarrett bay and then parks it for 364 days a year at wrightsville beach will balk when he has to pay an extra $120K in taxes on it?
All the horror stories you are pitching are directed at people who already are paying 3% on their purchase...if raising it to the normal sales tax on all other goods (except cars) is going to "destroy the industry", OK if you say so, but you've not spelled out how extending the same %tax payed on a the normal mans boat to the luxury boat will do the same.
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