The taxing problem for legislative Republicans (video)
The NC General Assembly convenes Wednesday ready to tackle unemployment insurance, teacher tenure, state Medicaid expansion and a host of other big issues.
Senate President Pro Tem Phil Berger has vowed that a tax reform package will advance this year.
Sen. Bob Rucho has already been previewing a proposal that would eliminate the state’s corporate and individual income taxes, offset by a hike in the state sales tax, which would apply to more things.
And while Republicans enjoy super-majorities in both the state House and Senate, it may not be that easy for them to come to agreement on a new tax structure for our state.
Ran Coble, executive director of the nonpartisan North Carolina Center for Public Policy Research, says just eliminating the personal income tax would eliminate 53% of all state revenue, which may be a hard sell.
“The problem with that for Republicans, speaking from a political point of view rather than a policy point of view, is that’s easy to say and it fits the growth of the economy. But for those people who are going to be asked to pay sales taxes, to them that’s a new tax or a tax increase. And a lot of the new Republican legislators were elected on platforms of ‘I won’t vote for any new tax increase,’” explains Coble.
Coble appeared over the weekend on News and Views with Chris Fitzsimon to discuss the upcoming legislative session, and Governor Pat McCrory’s agenda.