NC House tax reform bill passes 2nd reading - WNCN: News, Weather

NC House Politics Republicans Tillis Tax Reform

NC House tax reform bill passes 2nd reading

Posted: Updated:
RALEIGH, N.C. -

The North Carolina House of Representatives on Friday passed the "Tax Simplification and Reduction Act" on its second reading by a 72-32.

"Tax reform is not an event, it is a process," said House Speaker Thom Tillis (R-Mecklenburg).  "During our first session in the majority, Republicans in the House began that process by providing more than a billion dollars in sales tax relief.  Today, we took another major step in that process by passing a comprehensive tax reform package that will provide across-the-board tax relief for North Carolinians."

In a statement, TIllis' office said House Bill 998 will eliminate North Carolina's three-tiered personal income tax bracket system (with rates currently at 7.75 percent, 7 percent and 6 percent) and replaces it with a flat 5.9 percent personal income tax rate. 

The plan doubles the size of the standard deduction and increases the child tax credit from $100 to $250 for families making less than $100,000, Tillis' office said.  The bill provides a $25,000 combined maximum deduction for mortgage interest and property taxes, while deductions for charitable contributions remain unlimited.  Social Security benefits are not taxed under the plan.

The measure also cuts business taxes, reducing the franchise tax by more than 10 percent and shrinking the corporate income tax from 6.9 percent to 5.4 percent.  The plan would expand the state sales tax to only those services that are provided by entities that currently collect and remit sales tax revenue.  Medicine and food would not be subject to the sales tax.

Democrats argue the changes would result in more overall taxes for mostly tax filers and benefit the rich. They tried unsuccessfully to amend the bill so that the highest wage earners would pay more income taxes and the earned income tax credit that's supposed to expire would stay in place.

Rep. David Lewis (R-Harnett), the bill's sponsor, said,  "This comprehensive bill will move our state toward a fairer tax system that will help families prosper and stimulate job creation.  It is long overdue, and I am proud of the action taken by the House today."

The bill is expected to receive final approval in the House on Monday, after which it will be sent to the Senate.

The Senate has proposed a different tax reform bill.

 

  • PoliticsMore>>

  • Marijuana group celebrates 4/20 with new Raleigh chapter

    Marijuana group celebrates 4/20 with new Raleigh chapter

    Sunday, April 20 2014 11:27 PM EDT2014-04-21 03:27:43 GMT
    On this twentieth day of April, 4/20, some people in Raleigh are pushing for changes to the state's marijuana laws.The National Organization for the Reform of Marijuana Laws, or NORML, celebrated the unofficial weed holiday with some music in downtown Raleigh. The group re-opened a Raleigh chapter and it hopes to convince state lawmakers to follow the lead of Colorado and Washington in decriminalizing or even legalizing some pot possession.
    On this twentieth day of April, 4/20, some people in Raleigh are pushing for changes to the state's marijuana laws.The National Organization for the Reform of Marijuana Laws, or NORML, celebrated the unofficial weed holiday with some music in downtown Raleigh. The group re-opened a Raleigh chapter and it hopes to convince state lawmakers to follow the lead of Colorado and Washington in decriminalizing or even legalizing some pot possession.
  • McIntyre's retirement opens door for GOP in NC 7th

    McIntyre's retirement opens door for GOP in NC 7th

    Sunday, April 20 2014 12:33 PM EDT2014-04-20 16:33:02 GMT
    Democratic Rep. Mike McIntyre will retire after nine terms representing North Carolina's 7th Congressional district.Democratic Rep. Mike McIntyre will retire after nine terms representing North Carolina's 7th Congressional district.
    With McIntyre announcing his retirement after nine terms representing North Carolina's 7th Congressional district, Rouzer is back on the ballo.    
    With McIntyre announcing his retirement after nine terms representing North Carolina's 7th Congressional district, Rouzer is back on the ballo.    
  • Hagan contrasts persona, GOP in NC Senate campaign

    Hagan contrasts persona, GOP in NC Senate campaign

    Saturday, April 19 2014 11:51 AM EDT2014-04-19 15:51:50 GMT
    Kay Hagan's self-identification as a middle-of-the-road U.S. senator who fights for the middle class, among other groups, and responds effectively to constituent requests may sound trite coming from any politician's mouth seeking re-election.
    Kay Hagan's self-identification as a middle-of-the-road U.S. senator who fights for the middle class, among other groups, and responds effectively to constituent requests may sound trite coming from any politician's mouth seeking re-election.
Powered by WorldNow

1205 Front St., Raleigh
N.C., 27609

Telephone: 919.836.1717
Fax: 919.836.1687
Email: newstips@wncn.com

Can't find something?
Powered by WorldNow
All content © Copyright 2000 - 2014 Media General Communications Holdings, LLC. A Media General Company.