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N.C. Democrats’ Tax Plan Costing Jobs E-mail
Saturday, 27 June 2009 00:00

"Seeing how many holes we can shoot in our foot is not an economic strategy North Carolinians can count on to reduce our record 11.1% unemployment rate," Senate Republican Leader Phil Berger (R-Rockingham) said.

 

Raleigh - North Carolina online business owners received a message today from Amazon.com informing them that because of a tax package proposed by Democrats and making its way through the General Assembly they would no longer be eligible to participate an affiliate commission program. The Amazon Associates Program compensates web site owners for linking to products sold on Amazon.com. Many North Carolina based web site owners and small businesses use the earnings from the affiliate program to supplement their income; those earnings are already subject to the state income tax. Legislative Democrats want to use the commission program to justify levying new sales taxes on sales that Amazon makes to North Carolina residents. Amazon maintains that the new tax scheme is unconstitutional because it impedes the flow of interstate commerce and has filed a legal challenge to a similar scheme in New York. The N.C. affiliate tax is currently a part of the tax package supported by House Democrats and being negotiated by Democrats from both chambers. ("Amazon cuts off commissions," Under the Dome, 6/26/09)
"Seeing how many holes we can shoot in our foot is not an economic strategy North Carolinians can count on to reduce our record 11.1% unemployment rate," Senate Republican Leader Phil Berger (R-Rockingham) said. "This is just the beginning of the job and small business losses for North Carolina's economy from Democrats' plan to hike taxes during a recession. Do Governor Perdue and Legislative Democrats really not understand that raising taxes on businesses will cause additional job losses?
"We need to be finding innovative ways to attract business to North Carolina, not creating obstacles that drive businesses and jobs from the state. Actions have consequences. Amazon.com's decision to pull out of North Carolina proves the point Republicans have been making for months: raising taxes on small businesses destroys North Carolina jobs, slows our economic recovery, and makes us uncompetitive with other states. North Carolina needs a budget that will jumpstart job creation, revive existing businesses, and encourage the creation of new businesses. Job-destroying tax increases by Democrats fueled by their unquenchable thirst for wasteful spending will only make the recession in North Carolina worse."
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