Senate tax plan emerges
Posted May 6, 2013
Raleigh, N.C. — 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."