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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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Taxing churches is squeezing blood out of a turnip. Now if you want to include all other tax exempt charitable organizations like Red Cross, United Way, NAACP, or even gifts like your kid's allowance, then you might be able to scrape together enough to run government a couple of hours.

Hold on to your wallets, working NCers. They are under assault. Tillis wants a tax scheme that sacrifices fairness for that most valued of conservative ideals -simplicity. goldenosprey

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.

The best solution is a FLAT TAX! Sales taxes on everything including gas and food is unfair to the poor who spend a higher percentage of their pay on those items. A flat tax is simple and everyone pays the same.

Translation: Protect the rich, destroy the environment, and do the work of ALEC corporate masters.

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. As to nerdlywehunt- the Democrats have dismantled and disgraced the state for decdes. Time to clean up the mess!

Bring on the Fair Tax!!!!

This doesn't protect the rich. They send more money so they will pay more in taxes. Simple math would tell you that!

the Democrats have dismantled and disgraced the state for decdes. Time to clean up the mess! -yankee1

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

"The best solution is a FLAT TAX! Sales taxes on everything including gas and food is unfair to the poor who spend a higher percentage of their pay on those items. A flat tax is simple and everyone pays the same."

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.

The liberal fear-mongers are out in force when it comes to reforming entrenched broken-down government. Look out, the sky is falling. They're worried about their handout disappearing.

"This doesn't protect the rich. They send more money so they will pay more in taxes. Simple math would tell you that!"

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.

Taxing churches is squeezing blood out of a turnip.

are you nuts? Some of these mega-churches make in the millions and should be taxed on every dime!!!

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

the Democrats have dismantled and disgraced the state for decdes. Time to clean up the mess! yankee1 January 29, 2013 1:17 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.

There's a whole lot of dumb floating around on here. Spell checking might help and some basic economics might too.

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...

"The liberal fear-mongers are out in force"

That's too bad. They don't have a majority so they are spinning tires in the mud.

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,

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!

when fixing the voter ID issue is extremely simple...crumps

What issue? tells us where it is? Please

we will wait!

How did that happen...

teleman60 you forgot

TEN BLAME THE NEW GUY!

How about trying to reform your ole buddy Fletcher Hartwell before the rest of the senate reasons that if he can get away with it, so can they. We surely would 'preciate it!

NiceNSmooth: "Some of these mega-churches..."

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!!

I hear so much on here about the poor, or the working poor. Have any of you seriously looked at what the State of North Carolina considers poor? I personally know several people who are getting food stamps and other assistance while one of the two parties sits at home all day and the other works. Some have small children, others do not. What ever happened to BOTH people working if need be to make ends meet? What am I missing here??? It seems that as long as you stay under a certain income, you get more handouts, so why on earth would this second person want to get a job. Please new government... while you are looking at eliminating the income tax in favor of an increased sales tax (which I strongly favor), PLEASE look closely at the amount of welfare fraud...

I don't understand some of the comments made here today. Some complain when we are breaking the bank; and then complain when we finally have lawmakers bringing us out of the debacle we have been in for so long. A system designed for the state and world in the 50's and before does not work today. Back then, people took responsibility for themselves and; with the help of kindness by a "hand up" from others, pulled themselves up. Most did not believe that a few should support the many who now sit back and wait for others to hand "out".....while they sit and believe that it is "owed" to them. The changes mentioned here are to advance RESPONSIBILITY and self-reliance to/for all by making individuals, companies, corporations, schools and gov't (PEOPLE)responsible. Why is this so hard for some to understand? Or DO they understand; but will still go down fighting for "dependence" instead of self-reliance, INdependence and responsibility?

Hey JaySee - That's not the sky falling; it's the rug being pulled out from underneath you. Don't look to the Gov. to provide you clean water once the fracking crews have contaminated Lee County; there won't be any left. Of course the state will have benefitted by the additional 500 out-of-state workers who came with the drilling crews.

The liberal fear-mongers are out in force when it comes to reforming entrenched broken-down government. Look out, the sky is falling. They're worried about their handout disappearing. JaySee January 29, 2013 1:44 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.

How would the mega churches be taxed and the other churches that are barely making payroll not be taxes? Would churches have to report giving vs expenses? Would there then be deductions for good work in the community? Does work outside the U.S. qualify for the deductions? Simple isn't so simple and here's some news, there are no simple answers for complex problems.

That's not the sky falling; it's the rug being pulled out from underneath you. Don't look to the Gov. to provide you clean water once the fracking crews have contaminated Lee County; there won't be any left. Of course the state will have benefitted by the additional 500 out-of-state workers who came with the drilling crews. benhansen74 January 29, 2013 2:20 p.m

Unfortunately, I fear you're right on target. I hope I'm wrong, but the rush to frack has me really worried.

"Can't wait to see the proposals to eliminate the state and county pensions and convert them to 401k's like everyone else in America has to retire on. You want retirement medical then pay for it yourself like everyone else does....if you smoke or have pre existing conditions you are just out of luck. Man that tough republican love sire does hurt!!!!!!A very rude awakening awaits these government workers that have been on the grave train for so long."

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.

I wonder if they will include more science denial in this year's agenda. I also can't wait for fracking to begin so I can light my water on fire. It is a great party trick!

"What ever happened to BOTH people working if need be to make ends meet? What am I missing here??? It seems that as long as you stay under a certain income, you get more handouts, so why on earth would this second person want to get a job."

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.

I am so glad so many people want fellow North Carolinians to suffer... This is exactly what we need as a state.... The well off will continue to be well off and more of the others will suffer more... Even more exciting is the "in your face" approach by these peeps... It just thrills me to know that so many people don't like one another... Living in a state of hate... What a great state to live. Thanks so much for voting these peeps in office. Thanks so much for not caring about anyone else but yourself. If you do believe... Let's see what the Maker thinks on judgement day... If you don't believe, best of luck to you!

benhansen74: Rug pulled out...

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.

"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."

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.

"I am so glad so many people want fellow North Carolinians to suffer..."

How are these reforms making people suffer?

End State Income tax and bring on the Consumption tax. Let me keep the amount of money currently being extorted via State Income Tax. I continue to investigate this and there are additional complicated factors by which I may wind up paying the same… but so far, I come out ahead by more than $1,000. / year or about $90. p/mo (I would like that) This also means that “folks” currently working for cash will also be providing the State with money currently unavailable as no income tax is being extorted from them. Dealers, Criminals …um EVERYBODY. That new revenue could & should help pay down the State debt, maybe continue Unemployment checks rolling out indefinitely… But it might go for remodeling the Governor’s Mansion… although Perdue already did that with State “Education” Lottery monies… we got schooled there, didn’t we? Anyway, I’m for Consumption tax, no State Income Tax. Now if I could just keep what’s being extorted under “Federal taxes” I could affo

"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."

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

This is great news. Maybe our state officials can do enough good work to offset the terrible ideas and agenda being shoved down our throats by the Democrats and THEIR president.

"The best solution is a FLAT TAX! Sales taxes on everything including gas and food is unfair to the poor who spend a higher percentage of their pay on those items. A flat tax is simple and everyone pays the same."

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.

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

I'm still taking a wait & see attitude here. I'm hoping the Republicans can change my opinion of them (I understand elections have consequences) but even before the first session begins my hope is fading.

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.

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

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.

"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.

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

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?

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.

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!

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.

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.

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???

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

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