Our Informer

This Wednesday, the Senate Finance Committee will consider an approach to a new taxing structure for North Carolina. Concepts were introduced last week through presentations made to the committee which is chaired by Sen. David Hoyle of Gaston County. The presenters dusted off documents produced by study groups which have worked over the past eight years. Catawba County residents among the participants are Leroy Lail and Kitty Barnes. Each of the documents came to one conclusion: reduce tax rates and eliminate exemptions.

Presenters said sales taxes and income taxes could be lowered. But services would taxed at the same rate of retail. Attorneys, accountants, landscapers, yard services would be among those now generating revenue. The studies showed that 168 services could be taxed and presently North Carolina assesses 30. The average among states is 56. Some states tax as many as 140.

Sen. Hoyle said the objective is to redesign a taxing structure that would be “revenue neutral.” But with a $3 billion budget hole, Republicans observed the result will be to collect more revenue. The recent Senate budget now in the hands of House leaders left $500 million to be raised from unnamed sources. And, yes, Hoyle told some reporters, there will be higher taxes on cigarettes and alcohol.

Tax reform is not for the faint-hearted, former Gov. Jim Hunt was quoted as saying. The last time the state tax code was re-written was 1933 when manufacturing dominated the economy.

LAST GASP OF BIGOTS? The spooky “There’s a wind blowing and I am afraid” television ad creating fear about same-sex marriage found some legislators in Raleigh amused. New York Times writer Frank Rich described the ad as “Village of the Damned meets Chorus Line.” Year after year, Sen. James Forrester of Gaston and Rep. Mark Hilton of Conover parade to the news conference room in the General Assembly to urge a constitutional amendment prohibiting same-sex marriage in North Carolina. But with Evangelist Rick Warren and the Governor of Utah among those insisting gay marriage is a non-issue, Hilton and his associates may find their support evaporating.

LEAN AND GREEN: Several bills have been approved by Legislative Committees dealing with the rising interest in sustainable and green economies. A bill from Rep. Ray Rapp and approved in the Agriculture Committee calls for an 18-member commission to recommend state policy on sustainable issues. Dozens of other bills would support organic farming, preservation of forests, and alternative energy practices.

A new Lean and Green publication for the Hickory Metro region is scheduled to debut in six weeks.

TO THE RIGHT, MARCH: The new leadership of the Catawba County Republican Party represents a turn to the hard right, according to veteran mainstream Hickory party faithful. The reorganization of the Catawba County GOP organization was ordered by the state party after a complaint was filed by supporters of U.S. Rep. Patrick McHenry, including Rep. Hilton and former Catawba County Commission Bob Hibbits.

Observers are saying the new party structure reflects the bitter divide between supporters of McHenry and Sheriff David Huffman. Huffman reportedly is trying to find a candidate to oppose Hilton in the 2010 primary.

Now you see it now you don’t. With a wave of a hand, a magician can make rabbits disappear. In Raleigh, budget amendments can made appropriations vanish. It happens every year and it happened again last week when the Senate Appropriations Committee crafted its version of a state spending plan. A line item for the Center for Emerging Manufacturing Solutions was swept up in a “clean up amendment” offered by Chairwoman Linda Garrou and vanished. The next day Sen. Garrou said the language was a mistake and there is no intention to delete funding for CEMS and the Hosiery Technology Center. Somewhere along the way, the appropriation will be restored. Maybe like magic.

The magic act also removed from the budget a provision that would have the state fund only one school system management per county. The author of the provision, powerful Sen. Tony Rand, said the provision would save $11.2 million annually. After some Democrats balked, notably Sen. Martin Nesbit of Buncombe, the provision evaporated from the Senate draft.

WHERE’S THE BEEF: The spending plan developed by the budget has a half-billion revenue hole. This prompted some Republicans to balk at voting for a plan that “is like a pig in a poke.” It will be up to the Senate Finance Committee headed by Sen. David Hoyle of Gaston to push a $500 million package that is sure to include new taxes. Observers say taxes on cigarettes and alcohol will be lower than recommended by the governor, but new fees will be assessed to the fastest growing segment of the economy—the professionals. Lawyers, accountants, financial consultants, advertising agencies all will be paying more to the state coffers. Some say a complete overhaul in the state’s tax structure will be forthcoming with a major reduction in state corporate income taxes.

OCCUPANCY TAX: The bill sponsored by Reps. Ray Warren and Mitchell Setzer to raise occupancy taxes collected by hotels in Hickory and Conover cleared its first hurdle last week with approval by the Local Government II committee. It is a bipartisan bill with the support of Warren, a Democrat, and Setzer, Republican. Rep. Mark Hilton, whose district includes Conover, has been quoted as saying he will oppose the bill. No new taxes. Understand?

HOUSE DIVIDED: Hickory Republicans, including former U.S. Congressman Cass Ballenger, are saying the party is now divided, with control in the hands of the Right Wing. Supporters of U.S. Rep. Patrick McHenry are now holding top party positions, as well as precinct offices. Hickory Republicans who were former party activists are now predicting current Catawba County commissioners Kitty Barnes and Lynn Lail will be ousted. Barnes angered evangelical Republicans when she opposed Sen. Austin Allran in a GOP primary. State Rep. Mark Hilton, a strong McHenry backer, and Lail live in Conover. Hickory Republicans are encouraging a Conover resident to opposed Hilton in the 2010 primary.

POTTERY INDUSTRY? State Commerce Secretary Keith Crisco was among the people from across North Carolina attending the recent Catawba Valley Pottery Festival. While here, Crisco was informed of a plan to establish a Catawba Valley pottery program on the CVCC campus with the intent to bring in apprentices and collectors to promote the 200-year old tradition in this region. Pope Shuford, a prominent Hickory businessman, is contacting people in the area to gauge the level of interest in such a program and help raise $18,000 to launch the program on East Campus of CVCC. It will be under the direction of Kim Ellington, a respected potter in statewide circles. Pope is a member of the CVCC Foundation.

OUTSIDE THE PIT: Identifying Rep. Mark Hilton as a “snake handler” angered his close associates last week. Actually, the item identified Mr. Hilton as a spokesman for the ultra-conservative evangelicals in his party. Rep. Hilton feels he was unfairly tarnished with the “snake handler” label and we apologize.