NCCBI Leaders Vote to Oppose Any Tax Increase This Year

RALEIGH -- North Carolina Citizens for Business and Industry (NCCBI), the state's chamber of commerce and largest business group, announces that it will oppose any tax increase legislation during the General Assembly's short session, which starts next month.

NCCBI officials believe the budget shortfall should be addressed by reducing spending and that a tax increase would have an impact on a recovering economy.

The decision was reached after NCCBI's Executive Committee voted to adopt a resolution directing the association to lobby against any bill proposing higher tax rates for businesses or individuals or any tax increases that single out specific businesses or industries.

"Our belief is that the very best way to fix the budget shortfall is to reduce spending," said NCCBI Chairman Jim Hyler, who added that increasing taxes would impede an economic recovery. "There are signs that North Carolina is beginning to climb out of the recession. Any tax increase now will make an economic recovery harder to achieve," he said.

NCCBI is also calling for the General Assembly to give two blue ribbon tax commissions time to do their work. The panels, appointed by Gov. Mike Easley to address the state budget crisis, are the Commission to Promote Government Efficiency and Savings on State Spending and the Commission to Modernize State Finances. Several NCCBI members are represented on both panels including Hyler, who chairs the efficiency commission.

Both commissions will make reports to the governor prior to the short session that starts May 28 and a final report by year-end.

A copy of the resolution follows:

"Whereas, the state¹s worst economic conditions in more than a decade have hit business, industry and individuals extremely hard; and

"Whereas, the governor has named a high-level Commission to Promote Government Efficiency and Savings on State Spending, headed by Jim Hyler, chair of NCCBI, and a Commission to Modernize State Finances; and

"Whereas, it will take these two groups some time to identify short-range and long-range solutions, most of which will require legislative approval;

"Therefore, North Carolina Citizens for Business and Industry will oppose any tax increases in the 2002 session of the General Assembly involving tax rates for business or individuals or any tax increases which single out specific businesses or industries."

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