@NCCapitol

@NCCapitol

McCrory doesn't expect to roll out his own tax reform plan

Posted May 21, 2013
Updated May 22, 2013

— Gov. Pat McCrory said Tuesday he does not expect to roll out his own tax reform package this year.

Tax reform was a key priority for Republicans running for office last year. The GOP-controlled state House and state Senate have already rolled out their own tax reform plans.

McCrory said Tuesday he has an idea of what he would like to see, but he would likely not publicly release the parameters. 

"My goal is to have a consensus tax plan," McCrory said. 

Like his fellow Republicans in the state legislature, McCrory says the state needs to remake its tax system in order to spark economic growth.

"The high corporate tax and high income tax is making us less competitive, especially with our neighboring states," McCrory said. 

In order to reduce the income and corporate tax rates, both the House and Senate plans broaden the sales tax base, applying sales tax to more items and services that are not currently taxed.

The Senate plan is more aggressive, potentially applying sales tax to some 130-to-160 services. The House plan is more small-c conservative, expanding sales tax only to services associated with physical goods, such as delivery of a refrigerator or repairs for a car. 

In press statements, McCrory seemed more kindly disposed toward the House plan. Tuesday, he did not disclose the details of his thinking, but said he would not need to roll out his own proposal in order to affect the final outcome.

"There's been influence already," he said. "There's an open line of communication."

McCrory spent about 10 minutes Tuesday in a wide-ranging conversation about the state budget, tax reform, governance of the SBI and the Medicaid shortfall.

Gov. Pat McCrory Web only: Pat McCrory on budget, tax reform

61 Comments

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  • jeff34 May 22, 5:40 p.m.

    And just look at The Tax Fairness Act Website, their How Much Will You Save calculator. They have a "auto estimate" for Estimated NC Tax Deductions and Estimated Annual Spending.

    If you type in $30,000 in the Household Annual Income and click the "auto estimate" feature. The program estimates that person will spend 96.9% of the income to live in North Carolina. $50,000 income will spend 84.6%, $80,000 income will spend 73%, $150,000 income will spend 60.7% and $250,000 income will spend 47.6%.

    So a person making $30,000 will basically have to spend every dollar they earn to live, unable to save money to eventually purchase a house, get a new car or possibly to go back to school. But the person making $150,000 is only estimated to spend 60.7% of their earnings, so they would have almost 40% to save or purchase new items, etc.

    This essentially make the lower-middle class into lower class individuals that will eventually need assistance to live.

  • jeff34 May 22, 5:27 p.m.

    The NC Senate plan is very marketable and looks good on the surface, but when you get into the details, it is a typical GOP stance. The wealthy receive a nice tax break, while the lower-middle & lower class end up paying more overall taxes. The income tax reduction is essentially for the top tax rate and people making $50,000 and lower wouldn't see any income tax reduction until year 2 or 3 of the plan (minimum at that). Also essentially services that all people need would then be taxed, forcing the lower income people to do without savings or do without the services. Basically poorer people would be paying more taxes, while the rich can keep more money.

    I'm all for a fair tax and even consumption tax, but tax luxury items that are choices so the lower & middle class can work themselves up. Add additional tax to entertainment options, hotels, etc so people have a choice to do these items or not. Getting a vehicle fixed, HVAC fixed or a haircut should not be a taxable service.

  • archmaker May 22, 11:41 a.m.

    why would he when the general assembly is getting all the blame for the non-job ridiculous piles of steaming poo they've been trying to make into laws. pat, keep sitting back and do nothing and your poll numbers will continue to be high. or actually do something - govern - and lets see if my vote for you was worth it.

  • readme May 22, 10:09 a.m.

    I love the plan they proposed for a flat tax and adjustments to consumption taxes. This is how a fair tax plan should be structured. Will it cause liberal backlash since they have in place now a punitive progressive system , which some consider the "norm" or even "fair"? Sure. But I am glad to see that antiquated, borderline un-constitutional socialist JACK get reformed.

  • greg69innc May 21, 11:40 p.m.

    Whether a democrat or a republican if you've got a better more feasible more economic plan then go to Raleigh and share it. We are all in this together and it is time to do something about it.

  • greg69innc May 21, 11:38 p.m.

    If the governor is in agreement or is able to work with the legislatures in creating a feasible working budget then why waste time and money on his budget when he be working on something else. Let us all grow up and quit quarterbacking when how many folks go to Raleigh and involve themselves how many call their senator or representative and is actually involved in this important agenda our state is facing

  • greg69innc May 21, 11:36 p.m.

    one thing about it our governor is right about we have to lower our income tax and cut the corporate tax in order to be more competitive. Are these changes painful? Yes they are. Do we have a great number of people adversely affected by these decisions? Yes we do but we cannot lose sight of the state our state was in and is in and we all know climbing out of a hole is a long difficult process and that my friends is what we are having to do. I appreciate the honesty and the determination our governor possesses and his resolve to make a difference.

  • da Brute May 21, 6:23 p.m.

    Yes...he has his cronies doing the dirty work.

  • Plenty Coups May 21, 6:11 p.m.

    ""I'm Pat McCrory and I'm runin' for Governor." Once he wins election he becomes I'm Pat McCory and I'm runin' away from being governor."

    It's obvious the General Assembly is running the state and he's just deferring to them.

  • jcthai May 21, 5:43 p.m.

    McCrory doesn't need to do his own budget proposal. He merely needs to coordinate the two proposals in the House and Senate so as to maximize the benefits to the rich at the expense of everyone else. Why would he waste time with a proposal when the House and Senate already have us headed into the 17th century on their own?

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