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House Speaker Thom Tillis
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Tillis vows reform in tax code, state rules, schools

Published: 2013-01-29 12:05:00
Updated: 2013-01-29 18:52:34

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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prodigal-"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."

Conservatives don't. It's a kind of reverse robin hood ideology. Blame everything bad on the poor and middle class, constantly call them "takers" or the 47%, and insist they pay more so that the rich can pay less in taxes. Plenty Coups Spoken like a true liberal!

"Taxes fund govt operations, not act as some form of wealth redistribution or social justice system." mep

THIS!

ywm is correct. Of all the posts I have read, that one is the most accurate. When the first of the year brought smaller paychecks to ALL working people, it was a glimpse of the future for middle class, poor and rich alike. There is no partiality here to any group, we are all going to pay more during the next four years. If you will all just relax and keep paying attention, you will see it and hear it. Like my Mom always said, if you are quiet and listen, you learn more. That might serve us all well at this point.

"Tillis may as well do as much as he can now... the GOP will lose control in 4 years." OleNCNative BINGO! thayerguy......Why?

carolinawrox, you said it's unfair to tax PEOPLE instead of income. Do you honestly not realize 0bamacare is a tax on you because you exist? You do know we've all been told we will spend our money as the Dictator tells us, or we'll be fined? Did you know it's projected to be $695 by 2016? You seem to have at best a surface understanding.

Undoubtedly there will be many more cuts and new deductions for those fortunate enough to have great wealth. We here, in the middle class, will continue to pay for everyone else above and below our standard of living.

"Rich people will smartly buy their high priced items in South Carolina and Virginia. This way they can get all the benefits of living in NC while saving quite a few pennies. Expect to see even more businesses setting up shop on the other side of the border from Charlotte." Posted by corey3rd2

Elaborate on this, please. What type of high-priced items are you talking about? What couldn't anyone who was disciplined enough to save up the money necessary to buy one of these items take advantage of going across the state line? I am as middle-class as they come and I customarily save up enough money to buy a new car in cash. I would classify that as a high-priced item. If I find a better deal, I go across the state line. Of course, with cars, one has to pay the applicable tax in the home state. So my example is not a good one except for being a high-priced item.

I would expect poor people living on the state lines cross those lines for groceries and services such as hair cuts.

Oh, god! I am scared!!

So in order to make more money for the well off and rich we cut the throats of the poor,the senior's, and the disabled . The ones living on set incomes don't matter they just need to die or move away. The future may be cloudy for some but for others there is no future. You can look for a sharp increase in crime to start with. The republicans raised Cain with all the occupiers wonder how they will feel when the homeless storm the governors office. How can the republicans talk about taking money from the most vulnerable in our state but give huge raise's to the governors cronies and staff workers being paid off the back of the less fortunate. The republican party is so out of touch with reality it boggles the mind that they live in the same country. God has a special place for people who promote gluttony avarice and greed. For the life of me I don't understand what has happened to create the kind of attitudes that the wealthy has towards those who have nothing

State employees contribute 6% of their income into the state retirement system and the state as an employer matches the employee contribution at rates that have varied over the years. The State Treasurer's Office manages the pension fund and the state is not allowed to use the pension fund or borrow against it. Governor Easley did use the pension funds once I believe during his administration... but the state retirees sued and the pension was reimbursed by the state. It is an employee system and the reason it is in such good financial state in relation to other state's pension plans is that the state is not able to use the funds for other purposes (as it is employees contributions that are involved) and it is well managed. Hope that educates some of you out there. The pension a state employee receives is based on his years of service, his monetary contribution into the pension fund, and his 4 to 5 years of highest continuous salary. You don't get rich off a state pension!

Three letters.....CUT.

"And who forces employees to do the job? Nobody. If the market decides the rate is too low for the job required, the employer will be forced to raise the rate."

Or, as many have done, hire illegal laborers at a lower rate. The market for labor is actively manipulated by the unscrupulous.

"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." - godnessgracious2

Who are you to decide what someone "needs". Why should someone that has been financially successful be responsible to make up for your failure?

The arrogant leftists always feel they know what is "fair", and what everyone deserves, and "needs". Amazing the hypocracy...

Some seemed to miss this bit of info posted today. U.S. consumer confidence plunged in January to its lowest level in more than a year, reflecting higher Social Security taxes that left Americans with less take-home pay

Higher income taxes equal less take home pay. So which side of the spectrum is the best to take from. Some worry the wealthy will pay less. I suggest stop worrying about them and consider your own place on the economic ladder. Do the math. Cause the tax system/structure is going to change.

"Seems the Dems had a pretty good run of things....let's see what happens as we follow Alabama, Texas, and Mississippi down the rabbit hole of republican rule." - dwntwnboy2

Yes, with a couple of the Dem governors either in prison or indited, it was quite a "run". LOL!!!!!!!!!!!! A Bev fan if I ever heard one....

"All these folks crying about democrats in control of NC for the last 100 years. We became one of the leading states in the nation in job growth, quality of life, affordable colleges and many other things. Seems the Dems had a pretty good run of things...."

Sorry but none of that is correct any longer.

"Rich people will smartly buy their high priced items in South Carolina and Virginia. This way they can get all the benefits of living in NC "

What are the benefits? HIGH TAXES and lousy roads?

Not sure that the Photo ID matters anymore. Our Corrupt Federal government is getting ready to reward the criminal behavior of millions of people.

""let's see what happens as we follow Alabama, Texas, and Mississippi down the rabbit hole of republican rule.""

Yeah maybe we should follow California instead and work on bankruptcy proceedings one city at a time. This State is in bad fiscal shape. It is my hope that this changes. It is my hope to see significant spending cuts and a significant downsizing in the number of State Employees. I also hope they are not DUMB enough to expand Medicaid. In fact, they ought to see if there is a way to turn that PROGRAM back to the Feds where it belongs.

"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."

They also pay in the form of 6% cash taken out of their paychecks every single month.

>>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.

No it isn't Thom. Taxed on what you consume instead of taxing one for producing. Not difficult at all. If it doesn't cover all the expenses however, perhaps you should look at cutting spending as well

"Yeah, because Texas is doing so terribly with their budget SURPLUS. sonicbluezx3"

Half of their revenue comes from Federal Funds.

"let's see what happens as we follow Alabama, Texas, and Mississippi down the rabbit hole of republican rule."

Yeah, because Texas is doing so terribly with their budget SURPLUS. sonicbluezx3

You forgot to mention... Texas has lower unemployment, and a tax surplus..... AND NO STATE INCOME TAX!

Sales taxes are FAIR TAXES. Regardless of your income, your race, your creed, your religion, or even your dogs name... you pay the same as everyone else. The more you buy, the more you pay. People are suppose to be EQUAL in the eyes of the law... and taxes are made through law. Taxes fund govt operations, not act as some form of wealth redistribution or social justice system.

Rich people will smartly buy their high priced items in South Carolina and Virginia. This way they can get all the benefits of living in NC while saving quite a few pennies. Expect to see even more businesses setting up shop on the other side of the border from Charlotte.

"let's see what happens as we follow Alabama, Texas, and Mississippi down the rabbit hole of republican rule."

Yeah, because Texas is doing so terribly with their budget SURPLUS.

"And who dictates the job description? The employer."

And who forces employees to do the job? Nobody. If the market decides the rate is too low for the job required, the employer will be forced to raise the rate.

All these folks crying about democrats in control of NC for the last 100 years. We became one of the leading states in the nation in job growth, quality of life, affordable colleges and many other things. Seems the Dems had a pretty good run of things....let's see what happens as we follow Alabama, Texas, and Mississippi down the rabbit hole of republican rule.

"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."

Not fair to who? The person that paid ten times as much to the government? Even if the person making $100K paid a 89% rate and the person making $10K paid nothing, the person making $100K would still have more left over. Is that still unfair to you?

"It’s simple math that the left just doesn’t understand"- we understand that the taxes on food and other NEEDED items will go up by 400% from 2% to 8%. While those at the top won't even notice this, those of us who scrape by each month are going to notice that we can't afford the things we used to because basically we are getting a pay cut due to taxes, and taxes on services that we never had to pay before to begin with. It's a horrible idea- raising taxes on food is just wrong! Raise taxes on luxury items- high end cars, expensive houses, fur coats etc. I know if this passes, I'll do a LOT more shopping online for the 8% savings alone.

Morrigan - I said nothing about Obamacare. It's not perfect, but it's a start.

lasm, the ones that are complaining about this are the uninformed population that don’t read or understand the plan. They don’t understand that going to be sale tax model taxes everyone in the state. That includes illegals and tourist. That increases the tax base, which means more revenue. It’s simple math that the left just doesn’t understand. They are too busy with class warfare and jacking up the national debt.

When has everyone paying higher taxes become the mantra for the right? We already have a sales tax that illegals and tourists pay. Just because someone doesn't agree with you is no reason to call them ignorant. I am well informed of the plan and I am good at math. I have never taken a handout from the government (aside from tax deductions) and I don't really care there are people out there that make tons more money than I do. Why do the wealthy cry class warfare whenever their already very low taxes are even considered for increase. I also agree with Art Pope which s

"Ah, the liberals are up in arms over common sense ideas and innovations. The sky is falling! LOL." - Paladin2

I'll bite. Scratch the surface and you'll see the tax burden shift away from the rich and onto the poor... Is that the common sense you mean? That it's a bad idea?

Where are the jobs?

Under democrat control we had one of the worst employment rates in the country. We now have responsible people running the state. It is funny to see the liberals scramble. In their joy over Obama's win they forgot that their state, 29 other states and the House of Representatives are controlled by Republicans. Pirate01

Democratic House candidated received about a million more votes than the Republicans did. The Republicans remained in power only because they drew the maps of the gerrymandered districts.

"I hate to have to tell you this, IT WORKS wonderously in Texas. Texas is a way much better run state than NC."

LOL!!!!!!!!!!!!! Lord have mercy! Tell me you are being sarcastic!

Not that NC isn't fixin to give TX and MS a run for their money. :(

prodigal-"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."

Conservatives don't. It's a kind of reverse robin hood ideology. Blame everything bad on the poor and middle class, constantly call them "takers" or the 47%, and insist they pay more so that the rich can pay less in taxes.

Pirate-"Under democrat control we had one of the worst employment rates in the country. We now have responsible people running the state."

We still do and republicans have dominated the government the last two years if you want to go down that road. But of course, you leave that part out.

A wonderful thing about a consumption tax is that all of those people who have been cheating on their tax returns, people who get paid under the table with no taxes withheld, people who make their money illegally, and all of the illegal immigrants who pay no income tax would no be forced to pay their fare share every time they purchase something. I am sure every person in one of these categories will complain very loudly about a consumption tax.

"Tillis may as well do as much as he can now... the GOP will lose control in 4 years." OleNCNative

BINGO!

"How is taxing people more fair than taxing their income?"

I hate 0bamacare too.

I suspect the libs don't want a sales tax because it would prove how many illegals there are in NC.

UCannotBSerious “Ohhhhhh...that's why no one's been moving here. Got it.”

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???

godnessgracious, it won't matter what is done you won't like it 'cause they ain't Democrats. You and your lib friends aren't concerned about cuts tyhat may affect the welfare of the state of NC, you're concerned about cuts because you fear for your freebies.

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.

lasm, the ones that are complaining about this are the uninformed population that don’t read or understand the plan. They don’t understand that going to be sale tax model taxes everyone in the state. That includes illegals and tourist. That increases the tax base, which means more revenue. It’s simple math that the left just doesn’t understand. They are too busy with class warfare and jacking up the national debt.

I never thought I'd say this, but Art Pope is right in this regard. Any tax reform needs a balance of multiple income sources to offset the ups and downs of the economy. For example, if all NC's operating income was only from taxes and services, what would have happened during the recession when everyone cut back on purchases? There needs to be some sort of reliable income stream to provide citizen services - such as incarcerating criminals, paying firefighters and policemen, paying retiree and medicare obligations, filling pot holes, educating children, ya da, ya da. Taxes actually provide services which we all seem to expect!

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. rocket

And who dictates the job description? The employer.

So, Mr. Tillis, what did you expect those "long-term unemployed" to do? The economy was in shambles (some caused by you and your house members) and there was no work to be found. Did you expect those people to just fade away?

When he and his buddies and lobbiests aren't partying at his apartment, like last year...

"Churches should not be exempt from property taxes nor the sales and use taxes."

Especially those that send buses to get the poor disenfranchised voters get to the polls, but never to the DMV/ID place.

Under democrat control we had one of the worst employment rates in the country. We now have responsible people running the state. It is funny to see the liberals scramble. In their joy over Obama's win they forgot that their state, 29 other states and the House of Representatives are controlled by Republicans.

Love the libs, fracking the new global warming!!!

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