House, Senate tax plans compared
Posted May 30, 2013 11:31 a.m. EDT
Updated May 30, 2013 3:55 p.m. EDT
Worth noting: Sens. Dan Clodfelter, D-Mecklenburg, and Fletcher Hartsell, R-Cabarrus, put out a separate Senate proposal, which makes changes in such a way that it looks to be compromise between the House bill and the main Senate bill.
|Taxes, Changes||House Plan||Senate plan (Rucho)||Senate Plan|
|SALES TAX RATE||Drops from 6.75 to 6.65 percent in most parts of state starting in 2014.||Drops from 6.75 to 6.5 percent in Jan. 2015.||Drops from 6.75 to 6.5 percent starting Sept. 1, 2014.|
|SALES TAXED ITEMS||Services related to physical items, such as warranties and delivery, would be subject to tax.||The number of services to which sales tax applies would expand over four years, eventually encompassing more than 130 services not currently taxed.||More items, including some services attached to tangeable property, would be subject to sales tax starting July 1, 2014.|
|INDIVIDUAL INCOME TAX RATE||Statewide flat 5.9 percent tax rate replaces three-tiered system.||Statewide rate of 5.5 percent in 2014. That steps down over three years to 4.5 percent in 2016.||Statewide rate of 5.9 percent.|
|INDIVIDUAL INCOME TAX EXEMPTIONS||Can exempt first $12,000 of income or itemize deductions up to $25,000.||$10,000 of income tax-exempt in 2014. That steps up to $12,500 in 2015.||New, deductible housing expense allowance equal to the greater of $5,000 or the mortgage interest on the taxpayer's legal residence, not to exceed $10,000.|
|CORPORATE INCOME TAX||Rate drops from 6.9 to 5.4 percent over five years.||Rate drops from 6.9 to 6 percent over three years.|
* The bill also changes how the tax rate is calculated to be friendlier to manufacturers.
|Rate drops from 6.9 to 5.95 percent.|
* Repeals some tax credits.
* Makes corporate income tax more friendly to manufacturers and businesses with lots of equipment.
|ESTATE TAX||Repealed.||Repealed.||Plan does not show changes to the estate tax.|
|BUDGET IMPACT||Requires $221.8 million in cuts over two years.||Requires $770 million in cuts over two years.||Does not require any reserve. Sets aside extra revenue to repay federal unemployment insurance debt.|