Raleigh, N.C. — One day before the General Assembly returns to work, House Speaker Thom Tillis on Tuesday spelled out his chamber's goals for the 2013 session in one word – reform.
Tillis promised lawmakers would rewrite the state tax code, "move very aggressively" on regulatory reform and work with school superintendents on "meaningful education reform."
While some top Republicans in the state Senate are backing a plan that would eliminate the personal and corporate income tax in favor of a higher sales tax rate that is applied to food and services in addition to other goods purchased, Tillis said he was keeping his options open. The state needs to move cautiously to ensure one complex tax system isn't replaced with another, he said.
"When you move to a consumption-based system, it could potentially be as complex, at the end of the day, as the current system we have," he said.
Tillis has appointed a special committee to identify state regulations that are "out of step with best practices" and set up a plan to repeal them by the summer of 2014. The one-year sunset provisions would give people a year to review each regulation and backers a chance to argue why a particular rule should remain in place.
"We're not just talking about regulations that affect business but that affect all individuals and their interactions with government," he said.
He didn't elaborate on any educational reforms he wants to see, saying only that he's talked with local superintendents who have applied to operate charter schools so they can experiment with different teaching models.
"We need an environment that encourages innovation and promotes flexibility," he said.
Other issues facing the House this year, Tillis said, include approving the two-year state budget, passing legislation requiring voters to present photo identification at the polls and repaying the $2.4 billion owed to the federal government for unemployment benefits paid out during the recession.
The House plans to move "quickly and efficiently" on its agenda, he said, adding that he hopes to pass the budget "in record time" and possibly adjourn by the end of May. The General Assembly has been known to work well into July in years past.
The budget shouldn't be as much as a problem as in 2011 because the state is in much better financial shape now. Also, he said to laughs from fellow lawmakers and reporters, he hopes that the General Assembly won't have to face a budget veto from Republican Gov. Pat McCrory, as they did with Democratic former Gov. Beverly Perdue.
Tillis said he's in favor of overhauling the state unemployment benefits system by July 1, even if that means that some long-term unemployed workers could lose their federal jobless benefits.
Lawmakers have proposed cutting the maximum weekly benefit paid by the state from $535 to $350 and limiting the number of weeks people can receive state benefits. Any changes to the state program this year, however, would end long-term federal benefits under the deal Congress worked out to avoid the so-called "fiscal cliff."
"Unemployment was never intended to to this long-term, almost kind of entitlement, program. It was intended to be a bridge to help people as they go back to work," he said, adding that clearing the state's debt to the federal government will help recruit new businesses that won't be on the hook for the unemployment bill.
House Minority Leader Larry Hall said Democrats would work with the Republican majority on "things that make sense," adding that "some of this doesn't add up."
“Saying we need regulation for puppy mills at the same time you’re saying we shouldn’t have regulations on education is an interesting way to posit it,” said Hall, D-Durham.




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January 29, 2013 1:11 p.m.
Interesting you bring up simplicity, when fixing the voter ID issue is extremely simple and yet you stand in the way of that for no real good reason.
January 29, 2013 1:13 p.m.
January 29, 2013 1:14 p.m.
January 29, 2013 1:15 p.m.
January 29, 2013 1:17 p.m.
This doesn't protect the rich. They send more money so they will pay more in taxes. Simple math would tell you that!
January 29, 2013 1:28 p.m.
Ohhhhhh...that's why no one's been moving here. Got it.
January 29, 2013 1:42 p.m.
I agree that consumption taxes (like the sales tax) is regressive and hits the poor disproportionately, but I disagree that a flat tax is the answer. If you want to get technical, the "fairest" is just to charge everyone the same absolute dollar amount in tax (e.g., $750 a year).
Taxation is more about relative fairness than absolute fairness. Sure, a flat tax would still ensure that the rich pay more in absolute dollars, but it would require deep cuts in the budget that, frankly, most of us would find to be a nightmare and counterproductive to how we want to live in the U.S.
January 29, 2013 1:44 p.m.
January 29, 2013 1:44 p.m.
You are about as far from the truth as you can be... Actually the result of these tax changes would be big gains for the top 1 percent and substantial losses for the bottom 60 percent.
January 29, 2013 1:45 p.m.
are you nuts? Some of these mega-churches make in the millions and should be taxed on every dime!!!
January 29, 2013 1:46 p.m.
January 29, 2013 1:50 p.m.
While I agree with you, I'm fearful that we'll get more of the same, only this time instead of the normal people getting the breaks, the rich will now get them. Don't get me wrong, there does need to be some cleaning up (and out) of our politics here in NC, but just as the Dems did while in power, the Repubs immediately redrew voting precincts to improve their chances of re-election. More of the same stuff. There needs to be a panel of citizens instead of politicians to look at our voting maps. Neither party should be able to jerry-mander the maps to gain advantage. So I'm more than a little concerned here. Hope I'm wrong and things get better, but I'm fearful that NC will be moving backwards instead of forwards. But I'm praying for McCrory and all our elected officials. Hope they do the right thing.
January 29, 2013 1:50 p.m.
A consumption tax that covers groceries? Not a problem for people with big paychecks BUT if you're barely making it with kids to feed THEN TAXING GROCERIES AND SERVICES IS A TERRIBLE IDEA!!
This looks just like W BUSH -- get elected, urinate away the surplus, deregulate banks and financials, subsidize Big Oil, start some wars and 8 years later --- A DEPRESSION!!
How did that happen...
January 29, 2013 1:52 p.m.
That's too bad. They don't have a majority so they are spinning tires in the mud.
January 29, 2013 2:04 p.m.
eaxactly what do Corporations buy as far as goods and services, no where near the amount of us, Oh that's right....Corporations are People too!
January 29, 2013 2:07 p.m.
What issue? tells us where it is? Please
we will wait!
January 29, 2013 2:10 p.m.
teleman60 you forgot
TEN BLAME THE NEW GUY!
January 29, 2013 2:11 p.m.
January 29, 2013 2:16 p.m.
Are you nuts? Which mega-church makes millions? Can you prove that? Are you saying charitable donations are income? If so, get ready to tax Red Cross, United Way and all the others because they dwarf any churches donations. THINK!!
January 29, 2013 2:16 p.m.
January 29, 2013 2:17 p.m.
January 29, 2013 2:17 p.m.
January 29, 2013 2:20 p.m.
I'm no liberal fear-monger, and I've never had a handout in my entire life. I work two jobs (by choice) to afford the things I want, and I'm only concerned that if they pass a sales tax on food and other staple items, the retired seniors among us on fixed incomes will feel it more severely than the upper wage-earners, as will the poor. This tax plan doesn't work well in Texas, which has the highest rate of uninsured citizens in the entire nation. I have serious reservations about this plan. Not dismissing it out-of-hand, but I have some serious misgivings about saddling the poor and elderly with more expense. We seem to be losing our compassion for those less-fortunate.
January 29, 2013 2:28 p.m.
January 29, 2013 2:32 p.m.
Unfortunately, I fear you're right on target. I hope I'm wrong, but the rush to frack has me really worried.
January 29, 2013 2:39 p.m.
Then underpaid state workers can lose tens of thousands of dollars in a day like I did in '08. State workers DO pay for their retirement benefits, which aren't that great. They pay in the form of low salaries and not enough raises in the last several years to match the increase in health premiums or the raised the gov's staff gets.
January 29, 2013 2:41 p.m.
January 29, 2013 2:50 p.m.
When your job creator only pays $7.50 an hour and only that because the law won't let them pay less, it is not exactly cost effective to put kids in daycare. Unless you want more handouts for that too.
January 29, 2013 2:50 p.m.
January 29, 2013 2:53 p.m.
You liberals are the biggest bunch of worriers I have ever seen. All the hand-wringing and complaining is laughable. The best part is hearing all the anecdotal horror stories of the little guy getting taken advantage of... all while under Democrats control.
January 29, 2013 3:01 p.m.
If people are really hurting that badly financially, one person could always work part time in the evenings or on weekends. If you only qualify for minimum wage employment you do what you have to do. Maybe even try to work your way up or learn a new skill.
If I own a business and I can get qualified and reliable workers for minimum wage, why would I pay more? The job description dictates the pay. Don't blame the employer for that.
January 29, 2013 3:04 p.m.
How are these reforms making people suffer?
January 29, 2013 3:06 p.m.
January 29, 2013 3:10 p.m.
I hate to have to tell you this, IT WORKS wonderously in Texas. Texas is a way much better run state than NC.
January 29, 2013 3:11 p.m.
January 29, 2013 3:13 p.m.
How is taxing people more fair than taxing their income? How is the flat tax of someone's total income more fair than everyone pays the same 10% tax on the first $8925, then 15% on the amount between $8926 and $36,250, etc? I see this is much more fair than everyone paying 10% (or whatever percent) on their income. Do the math, someone earning $100K a year would have $90K left over whereas someone earning $10K would only have $9K left over. That doesn't seem fair at all.
January 29, 2013 3:20 p.m.
January 29, 2013 3:22 p.m.
I can understand some changes in our taxes, but not a complete shift that included groceries & medicines.
I can also understand doing something around unemployment but reducing the amount AND limiting the time both together seems too much to me.
I'm hoping they think long and hard about these changes and the real effects they could (will?) have.
January 29, 2013 3:24 p.m.
January 29, 2013 3:33 p.m.
January 29, 2013 3:34 p.m.
Especially those that send buses to get the poor disenfranchised voters get to the polls, but never to the DMV/ID place.
January 29, 2013 3:39 p.m.
January 29, 2013 3:40 p.m.
January 29, 2013 3:41 p.m.
And who dictates the job description? The employer.
January 29, 2013 3:42 p.m.
January 29, 2013 3:43 p.m.
January 29, 2013 3:43 p.m.
You couldn't be any more wrong. I've never had a hand out or a freebie in my life. What these people are proposing is raising taxes on people like me, people that make less than 30k a year and they want to cut taxes for the rich. What does this have to do with freebies? This is about how much more tax poor people like me are going to have to pay so we can give tax breaks to people that don't need them.
January 29, 2013 3:46 p.m.
I’m not sure what rock you are hiding under but people are leaving the west coast and north “Democrat controlled areas” to move here. Why do you think wake county schools are having such a problem dealing with GROWTH???
January 29, 2013 3:47 p.m.
January 29, 2013 3:52 p.m.