@NCCapitol

@NCCapitol

Dueling tax reform plans on tap Thursday

Posted May 29, 2013
Updated May 30, 2013

Money generic, dollars

— State lawmakers plan to unveil three tax reform proposals Thursday morning, but they don't plan to vote yet on any of them.

At 8:30 a.m. in the House Finance Committee, Rep. David Lewis, R-Harnett, unveiled the House's proposal.

House Bill 998 is expected to cost about $1.2 billion over the next five years. Lewis says it extends sales tax to some services for businesses that already collect sales tax for goods. It does not tax groceries or prescription drugs.

At 10 a.m., the Senate Finance Committee discussed two tax reform proposals.

Senate Bill 394 is a bipartisan reform package backed by Sens. Fletcher Hartsell, R-Cabarrus, and Dan Clodfelter, D-Mecklenburg. Its changes to the sales tax are similar to the House proposal.

Tax reform plans compared 

Senate Bill 677 is the proposal that's been talked about a lot this session, but hasn't yet been seen – a sweeping rewrite of the state's entire tax system sponsored by Sens. Bob Rucho, R-Mecklenburg, and Bill Rabon, R-Brunswick. It would add more than 130 new taxes, including on groceries, prescription drugs and Social Security benefits.

Senate budget-writers set aside $770 million over the next two years to pay for the reform package. 

The details on all three plans are still vague and will remain so until their respective sponsors unveil their proposed committee substitutes.

117 Comments

This blogpost is closed for comments.

Oldest First
View all
  • junkmail5 May 30, 12:10 p.m.

    The current system is seriously flawed and it does penalize the successful. Gainfully employed middle-class, small business owners, professionals, etc. carry the bulk of the tax burden.- realmmdonuts

    those aren't the successful.

    Those are the people who are barely staying ahead of inflation.

    The genuinely succesful are those in the top 1-5% of income, who have captured nearly ALL the economic gains of the last 30 years.

    the system certainly doesn't penalize them- you can tell because they're doing WAY WAY better than literally everyone else and paying near historically low tax rates.

    But again- the ACTUAL MATH shows that the GOP plan to replace income tax with sales tax would HURT the very group you're saying has too much burden now.

    The first 80% of earners would pay MORE under the GOP system. Including that middle class you're talking about.

    Only the the rich would see a tax cut.

  • Dukefan1 May 30, 11:55 a.m.

    "Tax Social Security Tax Food Tax Medicine

    The free ride is over to for the elderly in North Carolina. You old people need to get a real job and quit loafing around on your sofa watching Matlock."

    YOU should be ashamed of this post.

  • realmmmdonuts May 30, 11:46 a.m.

    "Yeah, our system doesn't do that though.
    You can tell because over the last 30 years nearly ALL the economic gain has gone to the very richest people.
    They're not only getting richer, they're doing so at a MASSIVELY faster rate than in the past.
    So to suggest they're being "unfairly penalized" is laughable untrue.
    They're doing VASTLY better than literally everyone else." - junkmail5

    The current system is seriously flawed and it does penalize the successful. Gainfully employed middle-class, small business owners, professionals, etc. carry the bulk of the tax burden. The progressive taxes you support will continue to penalize this group. Those at the extremes (high and low) have the means to avoid paying their fair share. So it's not laughable, it is the truth.

  • Civil4Mind May 30, 11:45 a.m.

    NCOuterBanks
    Your problem is your not even thinking.
    “LOL...I would bet I have taken more of those than yourself or most posting on here. The problem is your "method" is to punish the worker bees and reward the lazy. It doesn't even take a class to understand that is a plan that would never work”
    1. You may want to retake some courses and brush up. 2. I would be consider one of those "worker bees" so why would I want to punish myself. 3. It would take a class to get you to understand what this plan would do. There is a cause and effect to everything.
    Yes we increase taxes on items that are consider "luxury” but should not increase taxes on things that are consider essential. If we made things like food and health care affordable for the lower income class (all households in general) there would be less need for gov’t assistance. Increasing taxes on such things will cause the increase of gov’t assistance for those who barely get by now. Use your head!

  • junkmail5 May 30, 11:43 a.m.

    Of course you have no proof that those facing higher sales taxes are not freeloaders huh? - ncouterbanks69

    of course we do.

    You just don't bother to read them.

    the number of people who recieve any given benefit is well known.

    The number who are working or not, also known.

    Your version of reality simply is not true.

    Greater than 9 of every 10 entitlement dollars go to:

    The elderly, The disabled, and the WORKING poor.

    http://www.cbpp.org/cms/?fa=view&id=3677

    "Contrary to "Entitlement Society" Rhetoric, Over Nine-Tenths of Entitlement Benefits Go to Elderly, Disabled, or Working Households"

    With facts, figures, sources, etc... all things you have NONE of.

    Or is grandma a freeloader now?

  • SouthernPackerFan May 30, 11:39 a.m.

    Nope you just refuse to see with your eyes. Instead you see with your heart and like others on your side get taken advantage of. I would feel sorry for you but I believe in personal responsibility.

    Click to view my profile ncouterbanks69

    so, now everyone that is poor takes advantage of everyone, Nice
    tell that to the Mother and children when they go to the Food Bank, or the Mission for their first meal of the week. Have you ever in your life done anything for another less fortunate? Have you ever volunteered without expecting a reward? They aren't taking advantage of anyone. I'm also not naïve to believe that there are scammers, fraudsters out there, but be real, your lumping everyone on assistance into the same pot.
    You are the one that calls yourself a "Christian" , I call myself a Human Being. See the difference? everyone else can!

  • junkmail5 May 30, 11:23 a.m.

    I think were people are getting confused is, with the Tax change, the monies you presently pay, State, Local Revenue Taxes will be back in you pocket- pappybigtuna1

    Except the poor already pay very little of that tax.

    Whereas they'd pay ALL of a new, higher or broader, sales tax.

    Hence they'd be paying MORE under this system.

    The rich, who currently pay a higher rate on nearly ALL their income, would get a tax CUT under this system, since they don't spend 100% of their money (and the new sales tax rate would still be lower than their income tax rate)

    So again- this is a tax cut for rich people and a tax increase for poor ones.

    42 already explained this-

    If you make under $100,000 the GOP just RAISED your taxes (80% of you).

    If you make over 100,000 you just got a sweet tax break (20% of you).

    http://www.ncjustice.org/sites/default/files/BTC%20Brief%20-%20House%20Budget2.pdf
    42

  • ncouterbanks69 May 30, 11:20 a.m.

    "And as usual, you have loads of proof to back up your claims that everyone facing higher sales taxes because of this proposal is just a freeloader, right? Or do we just get more anecdotes?"

    never said that once but as usual your side loves to twist things. You are very good at it but others are even better. Of course you have no proof that those facing higher sales taxes are not freeloaders huh? The whole point is that everyone should pay their fair share and we do not agree on who does not pay their share but we do at least agree plenty do not.

  • mediawatcher May 30, 11:17 a.m.

    I'm guessing they didn't teach sarcasm back in the Stone Age.
    hiddentreasurescruecds

    Actually, they did. There's an art to it that doesn't always convey in the written word. I had to laugh at the "Stone Age" comment. Young people, for some reason, never realize that someday, if they are lucky, they are going to be old and subject to the disdain of younger people. Just wait because it will happen.

  • hiddentreasurescruecds May 30, 11:15 a.m.

    So according to the right wing portion of this message board all poor people "have it made" with their free smart phones, junk food, fancy cars, 2K rims, etc. Do I understand that correctly? You are saying that poor people have it made and have a great life, right?

More...