The tax reform proposal first unveiled Monday by Governor Pat McCrory won final approval in both the House and Senate Wednesday, and moves now to the governor’s desk for his signature.
Republican leaders in both chambers have pledged the legislation, which cuts personal and corporate income tax rates, will improve the state’s lackluster economy and lead to job creation.
Democrats contend the bill is not revenue-neutral and essentially amounts to a tax shift.
Rep. Rick Glazier explained working families would not see enough of a positive change under the tax plan to increase consumption, and it was just as probable the tax cut would be saved by those on the upper-end of the scale:
“That’s my fear. If those things take place differently than the majority feels like might happen, in the end all we have is a tax cut, a tax shift and a dramatic reduction in revenue capacity to fund the infrastructure needs of the state, ” said Glazier on Wednesday. “And we get not the best of all worlds, we get the worst possible outcome.”
The package would result in $600 million in less revenue for the state over the next two years.
For more on the myths and the reality of the tax plan, read today’s Fitzsimon File. To hear Rep. Glazier outline his reservations, click below: