Tax reform bill OK'd in NC House, Senate - WSLS 10 NBC in Roanoke/Lynchburg Va

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>>

  • NC Senate gives tentative OK to state budget

    NC Senate gives tentative OK to state budget

    Thursday, July 31 2014 9:11 PM EDT2014-08-01 01:11:41 GMT
    File PhotoFile Photo
    The new state budget provides more money for kindergarten through college classrooms, raises for public school teachers and a boost for vouchers for children attending private and religious schools.
    The new state budget provides more money for kindergarten through college classrooms, raises for public school teachers and a boost for vouchers for children attending private and religious schools.
  • Audit: Medicaid's NCTracks fails to meet milestones

    Audit: Medicaid's NCTracks fails to meet milestones

    Thursday, July 31 2014 12:33 PM EDT2014-07-31 16:33:29 GMT
    An audit raises further questions about North Carolina’s Medicaid payment system.
    An audit raises further questions about North Carolina’s Medicaid payment system.
  • NC Senate sees lawmaking continue into November

    NC Senate sees lawmaking continue into November

    North Carolina lawmakers want to continue their election-year legislative session past November's elections.
    North Carolina lawmakers want to continue their election-year legislative session past November's elections.
  • Giraffe collides with overhead bridge, killed during transport

    Giraffe collides with overhead bridge, killed during transport

    Thursday, July 31 2014 11:13 PM EDT2014-08-01 03:13:30 GMT
    An animal cruelty group plans to investigate the death of a giraffe during transport in South Africa. 
    An animal cruelty group plans to investigate the death of a giraffe during transport in South Africa. 
  • Kleenex alert: Canadian bank gives customers surprise gifts

    Kleenex alert: Canadian bank gives customers surprise gifts

    Thursday, July 31 2014 10:21 PM EDT2014-08-01 02:21:01 GMT

    Listen up, Wells Fargo, Bank of America and Sun Trust: A Canadian bank surprised several longtime customers with touching and lovely gifts.


    Listen up, Wells Fargo, Bank of America and Sun Trust: A Canadian bank surprised several longtime customers with touching and lovely gifts.


  • Sudan woman who faced death over faith lands in US

    Sudan woman who faced death over faith lands in US

    Thursday, July 31 2014 9:32 PM EDT2014-08-01 01:32:59 GMT
    A Sudanese woman who refused to recant her Christian faith in the face of a death sentence arrived Thursday in the United States, where she was welcomed first by the mayor of Philadelphia as a "world freedom...
    A Sudanese woman who refused to recant her Christian faith in the face of a death sentence arrived Thursday in the United States, where she was welcomed first by the mayor of Philadelphia as a "world freedom fighter" and...
Powered by WorldNow

WSLS 10, P.O. Box 10
Roanoke, VA 24022-0010

Telephone: 540.981.9110
Fax: 540.343.3157
Email: news@wsls.com

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