Senate leader Phil Berger, an Eden Republican, said the forthcoming legislation would trim the personal income tax from the highest 7.75 percent rate to 4.5 percent over three years and cut the corporate income tax from the current 6.9 percent to 6 percent.The combined local and state sales tax would fall from 6.75 percent to 6.5 percent, but it would apply to hundreds of services currently exempted, including prescription drugs. The food tax would increase from the current 2 percent to the full sales tax rate, more than a three-fold increase.The plan represents a retreat for Senate Republicans who earlier this year announced intentions to eliminate personal and corporate income taxes, a proposal also floated by Gov. Pat McCrory on the campaign trail. And many questions remain because lawmakers have not filed the exact legislation yet.But even in its more limited form, the measure faces an uncertain future with House GOP leaders reticent about going too far in shifting the tax burden.Berger called it the largest tax cut in state history – a $1 billion reduction. He said it is necessary to spark more economic growth and recruit businesses to North Carolina, though some views differ on whether it would achieve the stated goal.“Our current tax system cannot be fixed by nibbling around the edges,” Berger said in announcing the plan. “It’s time for our state’s leaders to take a courageous stand and implement true tax reform. This is a plan that will get our state headed in the right direction.”But less clear is how Senate Republicans pushing the legislation intend to pay for it and whether it will cut overall spending.The revenue from the state’s income taxes equal about $11.4 billion and pays for nearly 60 percent of the state’s annual discretionary spending. To offset any cuts, the legislation would eliminate billions of dollars in special interest loopholes, trim projected state spending by $3.4 billion over three years and implement the broader sales tax.The shift to consumption taxes would likely disproportionately affect lower income taxpayers. A provision in the proposed bill would exempt those making $10,000 or less from paying personal income tax, a figure that will increase to $15,000 over three years.But a calculator sponsored by the N.C. Republican Party to promote the plan found that a family of four making $30,000 a year with standard deductions would pay $2,405 more in taxes each year. By contrast, a single taxpayer making $100,000 would get a $1,886 tax cut.Rep. Tom Murry, a Morrisville Republican and pharmacist, said the prescription drug tax would “increase the cost of healthcare.” Like many House members, Murry said tax reform is needed but stopped short of endorsing the Senate’s plan. “This is a top priority,” he said. “It’s overdue.”Other components of the plan would eliminate the estate tax, which is paid by only the wealthiest estates, and trim the business franchise tax to 10 percent.North Carolina lawmakers have discussed revamping the tax code for years but made little progress. No other state has accomplished comprehensive changes in recent memory.“No state has done it well,” said Sabra Faires, a former state revenue assistant secretary. “In the end, they lack the political will to do it.”Read more here: http://www.charlotte...l#storylink=cpy
Our state is about to be absolutely dismantled by the GOP and their attacks on middle-class/unemployed North Carolinians. They are catering to the wealthy, and aren't even hiding it anymore.