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Senate tax plan emerges

Posted May 6, 2013

— Senate Republicans are getting ready to roll out their tax reform bill. 

Finance writers have been rolling out potential pieces of the measure for weeks, but no comprehensive bill has emerged. 

Monday night, Senate President Pro Tem Phil Berger released a website and video promoting the plan, which Republicans plan to unveil in a news conference Tuesday.

The material on the website doesn't fully explain the measure and does not include the tables that most tax experts would look for in evaluating the bill's impact on people with different levels of income. 

However, Berger says the state's top income tax rate would drop from 7.75 percent to 4.5 percent, with some people paying nothing.

Berger also says the tax plan will represent a $1 billion tax cut. It's unclear if that $1 billion would be all in one year or is counted over several budget cycles. 

While the sales tax rate will be cut, the sales tax will apply to more things. For months, tax writers have talked about "broadening the base." Although specifics are not available, hints in Berger's video suggest the Senate plan will expand taxes to services.

"No one gets special breaks or loopholes," Berger said in the video. "Mechanics and lawyers are treated the same."

41 Comments

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  • fled91 May 7, 5:19 p.m.

    I have no problem with dropping the income tax across the classes and increasing the sales tax. I think Unprepared food and medicine should not be taxed. This way It is not bottom loaded to impact the poor the most because the rich spend more then the poor. The wealthy folks do not shop at Walmart for the $9.99 deals on dress shirts.

  • tas0417 May 7, 2:31 p.m.

    Think this is a grat idea. Change is sorely needed and free handouts have got to stop. NC needs better accountability.

  • MrX-- May 7, 2:27 p.m.

    I absolutely HATE websites that start playing audio and video when you open the page.

    It is highly annoying.

  • No Party Affiliate May 7, 2:15 p.m.

    "No one gets special breaks or loopholes," Berger said in the video. "Mechanics and lawyers are treated the same."

    Should Berger bet his job on this? I doubt this is true.

  • NYtoNC81 May 7, 1:14 p.m.

    billO pretty much said my exact thoughts.

    Suppy-side economics simply doesn't spur growth. It simply shifts wealth from one one wealthy entity to another.

  • NYtoNC81 May 7, 1:13 p.m.

    mep: Lower taxes does mean there is more money in the pockets for people to spend... and since 70% of the economy is consumer spending.... this has to be good for the overall economy. But I'm pretty sure those that look forward to the free handouts are soon going to find themselves disappointed. Rev Barber and his minions..... get ready to protest!

    Me: Has supply side economics worked? Ever? In the history of the world?

  • rroadrunner99 May 7, 1:12 p.m.

    How is it that Mr. Berger can guarantee everyone a Federal tax deduction? I have heard that the home mortgage federal deduction is going away.I think this is a smoke and mirror deal myself.

  • goldenosprey May 7, 12:40 p.m.

    "Mechanics and lawyers are treated the same." Berger from the article

    SO, when will the GOP treat subsidized CEO millionaires on corporate welfare the same as poor people filling a cup for crumbs?

    Let me guess, when voters who may not have a current state ID in their possession are treated the same as absentee voters.

  • downtowner May 7, 12:03 p.m.

    "My parents' income is less than $30k combined and they have no dependents. According to Berger's site, they will see a tax increase. There in lies the problem: The folks who can afford to pay the taxes will get the cut while those who can't will get a tax increase. I'll sit back and wait for the screams of "Socialist! Communist! Obama-lover!" to come rolling in."

    Don't act so surprised. Much like Louisiana's sales tax-based system, this legislation was designed from the beginning to shift the tax burden to lower income families. Anything that originates from ALEC favors the wealthy.

  • SARCASTICLES May 7, 11:40 a.m.

    Great.....If I have 8.7 million in my bank account, and you have $57 dollars in yours, we'll both pay the same tax on whatever we buy, and neither of us will pay taxes on our incomes.

    Sounds fair and balanced to me...........

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