Uncategorized

Final approval of tax overhaul could come Wednesday (video)

Both the NC House and Senate wasted little time Tuesday in giving preliminary approval to the tax overhaul plan introduced a day earlier by Governor Pat McCrory.

When Rep. Joe Sam Queen suggested the tax proposal was not a job creator and simply an effort to eliminate taxes for the wealthiest North Carolinians, Republicans introduced a motion to end any further debate in the state House.

Queen’s  assessment was echoed as well by Budget & Tax Center director Alexandra Sirota, who described the tax package this way on The Progressive Pulse:

‘The loss of deductions and exemptions and the fact that the benefits of the rate reduction disproportionately benefits the wealthiest taxpayers results in certain taxpayers losing just under the income tax changes. For example, if you send your children to child care and once were able to claim the child and dependent care credit, its loss in this plan could make your income tax bill increase. Or perhaps you own a small business; the $50,000 business income deduction is eliminated under the tax deal. Other ways that your income tax load goes up, loss of the Earned Income Tax Credit, no more medical expense deduction, loss of the personal exemption, loss of the standard deduction for seniors and the deduction for retirement income.

Of course, there is also the sales tax expansion.  This will impact low- and middle-income taxpayers both directly and indirectly as these taxpayers spend more of their annual income on taxable goods and services.  It is also true that businesses, no longer benefiting from sales tax exemptions, will pass on a portion of their increased sales tax to the consumer in the form of higher prices.’

Despite those concerns, it’s expected both chambers will give final approval to the plan Wednesday, sending House Bill 998 on to the governor’s desk.

To watch the House leadership cut off debate on the tax plan after less than half an hour of discussion, click below:

2 Comments


  1. Frances Jenkins

    July 17, 2013 at 8:09 am

    Queen needs to stop throwing stones while living in a glass house in regards to housing for the poor.

  2. ML

    July 17, 2013 at 11:44 am

    Advocating for the poor is better than legislating against the poor whether or not you live in a glass house.

Check Also

The Week’s Top Five on NC Policy Watch

1. General Assembly-ordered cuts likely to hamper services ...

Top Stories from NCPW

  • News
  • Commentary

North Carolina Attorney General Josh Stein’s most important job is to keep people safe. For the Depa [...]

When Gov. Roy Cooper visits Wilmington on Monday, it's unlikely that he will be greeted by the [...]

When Gov. Roy Cooper signed the Strengthen Opioid Misuse Prevention or STOP Act into law last month, [...]

Support for needy districts and key positions within North Carolina’s top public school agency may b [...]

The post GenX & ’emerging contaminants’ appeared first on NC Policy Watch. [...]

73---number of days since the Senate passed its version of the state budget that spent $22.9 billion [...]

When you lower the bar enough for what’s possible, you create a new normal in which an inch forward [...]

It’s not an original thought to point out that the Trump Administration is a larger version of what [...]

Featured | Special Projects

NC Budget 2017
The maze of the NC Budget is complex. Follow the stories to follow the money.
Read more


NC Redistricting 2017
New map, new districts, new lawmakers. Here’s what you need to know about gerrymandering in NC.
Read more