NC Senate again delays final vote on tax overhaul - WNCN: News, Weather

NC Senate again delays final vote on tax overhaul

Posted: Updated:
RALEIGH, N.C. -

The North Carolina Senate again on Wednesday delayed a final vote on a tax overhaul plan tentatively approved last week, sending it back to committee for changes.

The Senate pulled the proposal from its schedule and returned it to the Finance Committee. Final passage was already delayed Tuesday for private meetings between the Senate and House to settle differences between the tax overhauls proposed by the two chambers.

The Senate plan goes farther than the House to cut corporate and income taxes. It also eliminates deductions for mortgage interest, phases out exemptions for nonprofits and takes more money away from local governments, which have warned they'd have to raise taxes or cut services.

It's not yet known when the bill will be heard in committee.

Senate leader Phil Berger, R-Rockingham, said Wednesday the tax bill was pulled as part of the negotiations process with House Republicans on reaching a final agreement on a tax overhaul. He said the Senate is waiting on a proposal from the House.

"We're going to take a look at it, figure out what we can do," he said. "I felt like the best thing for us is to go ahead and send the bill to the Finance Committee while we're engaged in this process. Hopefully we'll be in a position to schedule a Finance Committee meeting to take the bill up at some point."

Berger said the biggest impasse is over a "philosophical difference" on how much the tax plan should affect state revenues.

"They want to spend more; we want to spend less," he said.

The Senate plan goes farther than the House plan on tax cuts. It would repeal corporate taxes by 2017 and lower income taxes to a flat 5.25-percent rate by 2015. By the 2017-18 fiscal year, personal income and corporate tax cuts in the Senate plan would total $2.3 billion a year. The Senate plan would raise about $750 million less in revenue when fully implemented than the House proposal, which would raise $570 million less than the current tax structure.

 


 

Gary D. Robertson contributed to this report.

  • PoliticsMore>>

  • NC lawmakers reach compromise on coal ash measure

    NC lawmakers reach compromise on coal ash measure

    Tuesday, August 19 2014 10:47 PM EDT2014-08-20 02:47:46 GMT
    House and Senate leaders say lawmakers have reached a compromise on legislation that would make Duke Energy curb pollution from its 33 coal ash dumps.
    House and Senate leaders say lawmakers have reached a compromise on legislation that would make Duke Energy curb pollution from its 33 coal ash dumps.
  • Breakaway Republicans block NC incentives bill

    Breakaway Republicans block NC incentives bill

    Tuesday, August 19 2014 2:56 PM EDT2014-08-19 18:56:39 GMT
    File PhotoFile Photo
    A cadre of Republicans in the North Carolina House broke ranks with their leadership to vote down a sweeping economic incentives and tax bill.
    A cadre of Republicans in the North Carolina House broke ranks with their leadership to vote down a sweeping economic incentives and tax bill.
  • Romney headlining Tillis fundraiser in Charlotte

    Romney headlining Tillis fundraiser in Charlotte

    N.C. House Speaker Thom Tillis is challenging Democratic U.S. Senator Kay Hagan for her seat this fall.N.C. House Speaker Thom Tillis is challenging Democratic U.S. Senator Kay Hagan for her seat this fall.
    Mitt Romney is appearing at a fundraiser in Charlotte for Republican U.S. Senate candidate Thom Tillis.
    Mitt Romney is appearing at a fundraiser in Charlotte for Republican U.S. Senate candidate Thom Tillis.
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.