Members of the House Finance Committee okayed legislation Wednesday to repeal North Carolina’s estate tax.
Republicans argued the bill would help family farmers and attract wealthy retirees to the state. Rep. Jeff Collins suggested the estate tax was punishing those who were successful.
Several Democrats pointed out the irony that House Bill 101 was being advanced as the NC House was preparing to end a state tax credit for low-income working families:
“I cannot support repealing a tax that would benefit 123 people, when we have effectively raised taxes on almost a million people in this state,”said Rep. Susi Hamilton. “I think the timing of this is extremely bad. I think it makes us look like a body that has no interest in helping families and helping those who are most needy.”
Repealing the estate tax would cost the North Carolina about $52 million next year.
Dare County Rep. Paul Tine, one of three Democrats to vote for bill, questioned the wisdom of lawmakers in tackling tax reform piecemeal picking “winners and losers on each tax.”
The finance committee meeting was followed by a House session that saw legislators adopt changes to North Carolina’s tax code, cutting the Earned Income Tax Credit for moderate- and low-income families.
To hear a portion of Wednesday’s committee debate on repealing the estate tax, click below: