Tax reform bill OK'd in NC House, Senate - WNCN: News, Weather

Tax reform bill OK'd in NC House, Senate

Posted: Updated:
RALEIGH, N.C. -

A tax reform plan introduced Monday by GOP leaders received an initial OK from both the state House and Senate Tuesday.

The House voted 77-38 Tuesday for the tax plan after debate was cut off by Republicans after less than 30 minutes. The Senate voted 32-17 in the bill's second reading.

More debate and another vote are expected Wednesday, when the measure is likely to pass.

Gov. Pat McCrory says the tax reform will take the state from 44th in the nation to 17th in the nation as far as tax competitiveness. Lawmakers hope the reform attracts people and large businesses to the state, and ultimately creates jobs.

House Majority Leader Edgar Starnes says the package will benefit the average citizen and every business in the state.

The bill would reduce corporate and individual income tax rates and expand the sales tax base slightly.

According to an analysis by the legislature's non-partisan staff, a family of four earning $40,000 per year, filing jointly, would save $100 per year. That same family of four, earning $150,000, would save $750 per year. And a family of four, earning $250,000, saves $2,400.

One of the biggest changes is cutting the corporate tax rate from nearly 7 percent now to as little as 3 percent by 2017 if tax revenue grows.

"There are two pieces to the legislation -- individual and corporate," explained Mark Breakfield, a CPA with Chapel Hill-based Blackman & Sloop and chairman of the N.C. Association of CPA's Tax Committee. "The individual piece will probably apply to most. ... We are changing from a graduated tier rate to a flat tax.

"What that flat tax is, is in 2014 the tax rate will drop to 5.8 percent. Now how does that affect the common person? Well it varies depending on what you're income level is."

The bill would also cap mortgage interest and real estate taxes at a $20,000. Anything over that cannot be deducted as it could be in the past.

An increase in sales tax would be applied to electricity, movies and service contracts.

Democrats say the bill helps the wealthiest and large out-of-state corporations at the expense of working families. Democrats also argue that state lawmakers would have $2.4 billion less available for government spending over the next five years.

Charlotte Huffman

An award-winning journalist with an investigative edge, Charlotte has driven legislative change with reports on workplace safety concerns and contaminated groundwater. Contact our Investigative Team anytime HERE. More>>

  • PoliticsMore>>

  • Governor, NC Senate Republicans talk about budget

    Governor, NC Senate Republicans talk about budget

    Gov. Pat McCrory (File Photo)Gov. Pat McCrory (File Photo)
    Gov. Pat McCrory has met with Senate Republicans to try to look at ways to narrow their differences over budget adjustments that were supposed to be in place three weeks ago.
    Gov. Pat McCrory has met with Senate Republicans to try to look at ways to narrow their differences over budget adjustments that were supposed to be in place three weeks ago.
  • Audit: Ex-Tarboro town manager used funds inappropriately

    Audit: Ex-Tarboro town manager used funds inappropriately

    Tuesday, July 22 2014 12:24 PM EDT2014-07-22 16:24:48 GMT

    The state auditor’s report determined that the former town manager “made nearly $366,000 of purchases" that were inappropriate.

    The state auditor’s report determined that the former town manager “made nearly $366,000 of purchases" that were inappropriate.

  • Political group running another anti-Tillis NC ad

    Political group running another anti-Tillis NC ad

    An independent political group plans to spend more than $1 million over the next two weeks for a television ad critical of North Carolina Republican Senate nominee Thom Tillis by trying to link him to conservative...
    An independent political group plans to spend more than $1 million over the next two weeks for a television ad critical of North Carolina Republican Senate nominee Thom Tillis by trying to link him to conservative financiers.
  • Trending StoriesTrending StoriesMore>>

  • Parts of Durham once again flood as business owner looks for relief

    Parts of Durham once again flood as business owner looks for relief

    Monday, July 21 2014 10:20 PM EDT2014-07-22 02:20:30 GMT
    Several inches of rain created flooding in parts of Durham on Monday.
    Several inches of rain created flooding in parts of Durham on Monday.
  • Largest companies by revenue in each state

    Largest companies by revenue in each state

    Thursday, July 10 2014 8:01 PM EDT2014-07-11 00:01:10 GMT
    Broadview Networks recently decided to find out the biggest -- by revenue -- company in each state in the US.The company used the Fortune 500 list to start with, but needed data by state, so it turned to Hoover's.With data from that company, they were able to search through each state's list of companies and then find the largest -- by revenue.Just flip through the list above and see who is the biggest in each state, what town they are based and their revenue.
    Broadview Networks recently decided to find out the biggest -- by revenue -- company in each state in the US.The company used the Fortune 500 list to start with, but needed data by state, so it turned to Hoover's.With data from that company, they were able to search through each state's list of companies and then find the largest -- by revenue.Just flip through the list above and see who is the biggest in each state, what town they are based and their revenue.
  • Durham worker says he was let go after receiving back pay

    Durham worker says he was let go after receiving back pay

    Monday, July 21 2014 10:32 PM EDT2014-07-22 02:32:25 GMT
    Michael David said Dayeco Construction owed him a paycheck for more than six weeks of work.Michael David said Dayeco Construction owed him a paycheck for more than six weeks of work.
    A Durham man said he was let go by his employer after finally getting a paycheck that he'd waited six weeks to receive.
    A Durham man said he was let go by his employer after finally getting a paycheck that he'd waited six weeks to receive.
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.