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 GOP Senate candidates face off as early voting begins

    NC GOP Senate candidates face off as early voting begins

    Wednesday, April 23 2014 11:15 PM EDT2014-04-24 03:15:49 GMT
    The four top-polling Republican Senate candidates, vying to unseat Democrat Kay Hagan, debated on Wednesday night in Raleigh, the night before early voting was set to begin. The primary is May 6, but voters can start heading to the polls on Thursday.During the half hour televised debate, State House of Representatives Speaker Thom Tillis of Charlotte said he was leading a conservative revolution in Raleigh, cutting regulations and taking credit for falling unemployment numbers. Tillis faces c...
    The four top-polling Republican Senate candidates, vying to unseat Democrat Kay Hagan, debated on Wednesday night in Raleigh, the night before early voting was set to begin. The primary is May 6, but voters can start heading to the polls on Thursday.During the half hour televised debate, State House of Representatives Speaker Thom Tillis of Charlotte said he was leading a conservative revolution in Raleigh, cutting regulations and taking credit for falling unemployment numbers. Tillis faces c...
  • Committee proposes rules for drone use in NC

    Committee proposes rules for drone use in NC

    Wednesday, April 23 2014 4:58 PM EDT2014-04-23 20:58:27 GMT
    A legislative committee approved a set of regulations that it hopes will calm people's fears about the use of drones while allowing the industry to flourish.
    A legislative committee approved a set of regulations that it hopes will calm people's fears about the use of drones while allowing the industry to flourish.
  • Republican NC Senate candidates meet in debate

    Republican NC Senate candidates meet in debate

    Wednesday, April 23 2014 2:24 PM EDT2014-04-23 18:24:44 GMT
    Thom Tillis largely shrugged off criticism about aspects of his legislative record from one of the three other candidates participating in their first television debate.
    Thom Tillis largely shrugged off criticism about aspects of his legislative record from one of the three other candidates participating in their first television debate.
  • Fire at Saw Mill in Bedford County is under investigation

    Fire at Saw Mill in Bedford County is under investigation

    Wednesday, April 23 2014 9:55 PM EDT2014-04-24 01:55:50 GMT
    A fire ata saw mill in Bedford County is under investigation. It happened thisafternoon around 5 at Central Virginia Pallet and Stake on Centerville Road.Bedford County's Fire Chief says there were no injuries, but the owner estimates the damages at about $75,000The chief says thefire is still burning, and it will likely burn for a few days, but it is contained.The cause of the fire is unknown, butit's believed to be accidental.
    A fire ata saw mill in Bedford County is under investigation. It happened thisafternoon around 5 at Central Virginia Pallet and Stake on Centerville Road.Bedford County's Fire Chief says there were no injuries, but the owner estimates the damages at about $75,000The chief says thefire is still burning, and it will likely burn for a few days, but it is contained.The cause of the fire is unknown, butit's believed to be accidental.
  • 29 Virginia High Schools on Personal Finance Top-100 List

    29 Virginia High Schools on Personal Finance Top-100 List

    Tuesday, April 22 2014 9:32 PM EDT2014-04-23 01:32:06 GMT
    29 schools in the Commonwealth, including many in our area, ranked the the nation's top 100 best high schools for personal finance instruction.
    29 schools in the Commonwealth, including many in our area, ranked the the nation's top 100 best high schools for personal finance instruction.
  • Franklin Co. Sheriff's Office investigating juvenile death

    Franklin Co. Sheriff's Office investigating juvenile death

    Franklin Co. Sheriff's Office investigating juvenile death

    Tuesday, April 22 2014 10:50 AM EDT2014-04-22 14:50:58 GMT
    Deputies were called to Double Oaks Lane in the Burnt Chimney community, where they found a seven-year-old boy with a gunshot wound.
    Deputies were called to Double Oaks Lane in the Burnt Chimney community, where they found a seven-year-old boy with a gunshot wound.
  • Most Popular StoriesMost Popular StoriesMore>>

  • Mom bites off dog's ear to save daughter during attack

    Mom bites off dog's ear to save daughter during attack

    Tuesday, April 22 2014 2:49 PM EDT2014-04-22 18:49:19 GMT
    Image from CNN/KHOU-TVImage from CNN/KHOU-TV
    In a backyard in Alvin, swings a very lucky girl. Her name is Mackenzi Plass, or Kenzi for short, and she survived a dog attack and has undergone several surgeries."She'll be two and a half in May," said her very proud mother Chelsi Camp. "She's doing great. You wouldn't know it if you couldn't see."Mackenzi has scars on her face after the ordeal just weeks ago that put her mother's animal instincts to the test."You do whatever you can," said Camp. "I don't have physical strength at my side."...
    In a backyard in Alvin, swings a very lucky girl. Her name is Mackenzi Plass, or Kenzi for short, and she survived a dog attack and has undergone several surgeries."She'll be two and a half in May," said her very proud mother Chelsi Camp. "She's doing great. You wouldn't know it if you couldn't see."Mackenzi has scars on her face after the ordeal just weeks ago that put her mother's animal instincts to the test."You do whatever you can," said Camp. "I don't have physical strength at my side."...
  • Mom wins lawsuit against TSA after breast milk screening problems

    Mom wins lawsuit against TSA after breast milk screening problems

    Wednesday, April 23 2014 4:40 PM EDT2014-04-23 20:40:54 GMT
    A Southern California woman who was held at a Phoenix airport four years ago after refusing to have her breast milk X-rayed has reached a settlement with the Transportation Security Administration. Stacey
    A Southern California woman who was held at a Phoenix airport four years ago after refusing to have her breast milk X-rayed has reached a settlement with the Transportation Security Administration. Stacey
  • Owner of Raleigh 'Party Mansion' guilty of tax evasion

    Owner of Raleigh 'Party Mansion' guilty of tax evasion

    Monday, April 14 2014 4:07 PM EDT2014-04-14 20:07:04 GMT
    Claude Verbal II, who now lives in Miami, pleads guilty to a number of federal tax evasion charges.
    Claude Verbal II, who now lives in Miami, pleads guilty to a number of federal tax evasion charges.
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.