Log in to WRAL.com with one click using your favorite social network:
OR
Log in using your WRAL.com account:



Wrong email/password combination.

Forgot password?

Register with WRAL.com using your favorite social network:
OR
Register for a WRAL.com account using our web form.

7:42 a.m. • 5-21-13

Weather Forecast for Raleigh

  • Today: Thunderstorm.
    • Hi: 82° F
  • Wed: Thunderstorm.
    • Hi: 84° F
  • Thu: Thunderstorm.
    • Hi: 80° F

Other Locations

> 7 Day Forecast

Doppler Image
@NCCapitol
General Assembly voting buttons
print friendly

Legislative agenda starts with tax reform, education policy

Published: 2013-01-26 16:00:00
Updated: 2013-01-29 09:15:17

The General Assembly has set out to remake the state's safety net programs for the poor and rewrite North Carolina's antiquated and exception-riddled tax code with one of the least experienced group of lawmakers in living memory. 

More than 100 of the 170 House and Senate members did not serve in state office just three years ago, marking the state's biggest legislative turnover since the 1970s. 

Many of these new faces are part of a Republican takeover of state government that swept away Democrats' century-long hold on power.  At its most ambitious, the Republican legislative agenda will alter everything from how the state takes care of its poorest citizens to how it regulates businesses. While there will be debate in each individual policy area, the GOP is really attempting a broader philosophical shift, observers say.

"It's a question of how we provide things we want and value," said John Quinterno, founder of South by North Strategies, a Chapel Hill company specializing in economic and social policy research.

Republican leaders say that the key to providing those things of value, such as public education and health insurance for the poor, is controlling costs and changing how taxpayers bankroll government.  

More Info     The State House of Representatives 2013 N.C. General Assembly Issue Tracker

Lawmakers held a one-day organizational session in early January to elect leaders and set their rules for the session. But the heavy lifting of legislating – drafting bills, crunching numbers on the state budget and negotiating compromises – begins Wednesday, when the session opens in earnest. There are no hard-and-fast rules that govern when lawmakers have to finish their work, although the current budget does expire June 30, but Republican leaders have signaled that they expect a fast-moving session that should end in May or June.

Those high hopes for a speedy conclusion seem reasonable now. Republicans have super-majorities in both the House and Senate, and after two years of laboring under a veto threat from Democratic Gov. Bev Perdue, they are working with Republican Gov. Pat McCrory. Both legislative leaders and the governor share an agenda that on its surface seems in sync.

For example, all agree that a remake of the state's tax code is in order. 

Tax reform agreements and disagreements 

"Everybody is talking about tax reform," Senate President Pro Tem Phil Berger said during a news conference with reporters earlier this month. "It's important for us because the current outline of our tax system is based on ... a 1930s economic model that is really not there. You've heard that from Republicans and Democrats over the years. We intend to move forward this time with a tax reform package."

For weeks, Sen. Bob Rucho, R-Mecklenburg, has been touting a plan that would eliminate the state's corporate and individual income taxes in exchange for raising the sales tax and applying it to more things. While that has been the most discussed plan, it has not been universally embraced, even by Republicans.

"There is no Republican proposal or plan," said Art Pope, McCrory's budget director. He said the outline Rucho is touting, which Berger backs, is only one of several options. Pope, who will advise the governor on what tax policy the state should pursue, said he worries that eliminating income taxes entirely could be bad for the state.

"To go there from where we are now is very difficult to do and has lots of impracticalities," Pope said. On the campaign trail, McCrory talked about the need to lower income taxes in order to be competitive with neighboring states, but he did not necessarily advocate for elimination of income taxes. 

It's also unclear how a House plan might look. 

"People always overestimate partisan conflict and underestimate institutional rivalry," said Ran Coble, executive director of the North Carolina Center for Public Policy Research. "There are still big differences between the House and Senate, and even the governor, even with those super-majorities."

As recently as 2008, Democrats held the executive mansion and both legislative chambers. Even with one party in control of most organs of state government – albeit with slimmer majorities than Republicans hold today – there were budget showdowns and public spats.

Both Berger and House Speaker Thom Tillis are said to be considering a run for the U.S. Senate seat now held by Democrat Kay Hagan. Neither legislative leader has directly said whether he will or won't run, but if both of them jump into the race, Coble said it would exacerbate the normal House-Senate rivalries. 

Some of those differences began to emerge last year. Tillis and House Republicans forcefully backed a plan to provide compensation to victims of North Carolina's eugenics program of the early to mid-20th century. The Senate refused to hear that bill. That was a small difference among many legislative accomplishments, but another sign that feuds are possible, even among lawmakers from the same party.

On the agenda

No list of pending legislative issues is likely to be complete. Lawmakers filed more than 2,000 bills during the past legislative session. Of those, 203 became law, with a handful of others passing as resolutions. However, there are some broad topics, such as tax reform, that are likely to come up and dominate the political news this spring.

Early in the session, legislative leaders in both chambers say they will pass a bill to require voters show identification when they go to the polls and to repay $2.4 billion borrowed from the federal government in order to pay unemployment claims. Along with McCrory, legislative leaders will have to decide whether North Carolina should run its own federal health care exchange under the Affordable Care Act and whether to expand the Medicaid program to cover up to 500,000 more people, as allowed by that federal law.

"There are major financial implications and human implications regarding this decision," McCrory told the North Carolina Association of County Commissioners on Friday. 

Lawmakers are also expected to push forward with changes to the state's education system. In particular, Berger said, the Senate would push plans to give schools more flexibility to hire and fire teachers and reward better performing teachers or those who take on tougher assignments. 

"You will see a renewed effort in that field," said Berger, R-Rockingham. 

Berger and others, including House Speaker Pro Tem Paul Stam, also said cutting back on regulations issued by state agencies would continue to be a legislative focus.

"I hope, by the end of the session, we'll have the craziest rules whacked down," said Stam, R-Wake.

He offered the regulation of those who braid hair for a living as one licensing standard that ought to be struck down. He said lawmakers make also try to loosen rules on food trucks. 

During his opening-day speech, Tillis, R-Mecklenburg, pointed to another possible area for action.

"We must protect our workers and their right to work, and we must send the very clear message to businesses already in North Carolina and those considering expanding here that North Carolina will continue to be the least unionized state in the nation," he said, garnering one of the biggest applause lines of the day.

North Carolina is already a right-to-work state by law, but Tillis said after his speech that it is possible lawmakers could push forward with a constitutional amendment.

Read More Posts from this Blog

85 Comments


WRAL.com welcomes your comments on this story. All comments are moderated prior to publication based on our posting guidelines. Please review them prior to posting and if your message is not approved.

This story is closed for comments. Comments on WRAL.com news stories are accepted and moderated between the hours of 8 a.m. and 8 p.m. Monday through Friday.


page 1 | 2 | 3
<prev    next>
sort order: oldest first | newest first

They are really wanting that food tax bad. We are one of the few states that has a food tax. Congrats NC too bad you are know for having something more in a "tax".

I don't have high hopes, Republicans in North Carolina are more pro-business than they are pro-citizen.

Charlotte didn't do so well under McRory losing it's spot in growth to Raleigh and just drive through Charlotte and drive through Raleigh and you can see why. As the banking capital of the US you would expect better.

I see North Carolina sacrificing a quality of living standard to the benefit of doing business and this will hurt North Carolina in the long run.

Sounds scary.

Beware 99% they are coming for you! The circus is back in town.

"North Carolina is already a right-to-work state by law, but Tillis said after his speech that it is possible lawmakers could push forward with a constitutional amendment."

The sure do love wasting money and time putting our existing laws into the constitution. Throw in voter ID? Moving the tax burden to the poor? The "less government" party doesn't sound that way.

This current republican General Assembly has made it obvious that they don't really support public education and public school teachers with weird priorities such as going after the NCAE in special midnight votes and by refusing to properly fund education afetr 4 years of cuts. Now they want to end tenure for teachers. Fine, but where is the money for their stated goal of "paying the good teachers more"? Why don't they honor their own pledge? Is this just one more case of public eduction bashing smoothed over with promises that make it sound OK but in reality never happen? (paying the good teachers more) Why do taxpayer supported Charter schools not have to follow the same rules as regular public schools? If their premise is that bureaucratic red tape and rules stifle innovation etc., then why not eliminate that red tape for all schools? Why are our schools funded amongst the worst in the nation? Why not address that rather than make another round of tax cuts the priority?

Most ridiculous tax policy I have ever heard. Increasing the sales tax, expanding the sales tax base and creating a new sales tax base is going to impact the poorest among us most dramatically. The people that can afford this the least are going to pay more just to put food on the table. Sales tax is basically a flat transaction based tax. So what they are really doing is increasing the tax on the poorest and decreasing the tax on the wealthy. Dumb idea

Put it to you this way. When I needed surgery at WakeMed, I needed to show a photo ID, yet to vote I do not need to show one?

And yes...I am all for a new tax code. Enough is enough.

How many people here understand all the different tax codes? If you go to the US Government Printing Office ( www.gpo.gov ), you can order a complete set of Title 26 of the US Code of Federal Regulations (that's the part written by the IRS), all twenty volumes of it, at the bargain price of $974, shipping included.

According to the US Government Printing Office, it's 13,458 pages in total. The full text of Title 26 of the United States Code (the part written by Congress--available for an additional $179) is a mere 3,387 printed pages, bringing the adjusted gross page count to 16,845.

NOBODY knows it. It needs to change!

WOO HOO... ridding the State of the income tax is a GREAT idea. Tax folks when they spend, not when they EARN! It is not so much a tax break for anyone... it is a FAIR method of taxation. And we know liberals HATE fair taxation. The purpose of taxation is to fund the govt, NOT to act as some sort of wealth redistribution system, or class warfare premise. Wealthy people spend FAR FAR more than the poor do on everything. Hence, they pay the bulk of sales taxes. The truly poor are already heavily subsidized through various govt programs such as food stamps. I personally would like to see necessity items be exempt for all taxes... but hey, no system is perfect.

This bunch really loves pushing through constitutional amendments, don't they?

page 1 | 2 | 3
<prev    next>
sort order: oldest first | newest first

Political Video Picks

 
  • Capitol Bureau Chief Laura Leslie and investigative reporter Mark Binker break down the North Carolina Senate's budget proposal.

  • The Senate budget subcommittee on health and human services gives a presentation on May 20, 2013.

  • North Carolina Attorney General Roy Cooper and a number of local law enforcement officials from across the state on Monday criticized…

  • Some teachers say the proposed Senate budget, which includes no pay raise for teachers and other changes to education funding, is…

  • Lawmakers called it a step toward a more expansive biometric system that would use identifiers such as fingerprints to keep track of…

  • Attorney General Roy Cooper and other law enforcement officials speak out against the Senate's budget proposal to move the SBI under…