Carolina Journal’s Barry Smith has the latest on efforts by North Carolina legislators to reform the state’s outdated, biased tax code.
“We are making progress in our discussions on tax reform, as evidenced by the newest plan in the Senate that addresses some House concerns over taxing Social Security and charitable contributions,” House Speaker Thom Tillis, R-Mecklenburg, said in a statement. “The House Republican caucus will review the bill when it comes to our chamber, and we will continue to work with the Senate and the governor to address concerns that remain.”
The version of House 998 that won tentative approval Tuesday in the Senate would lower the personal income tax rate, phase out the corporate income tax, and expand the sales tax to a handful of services. The measure is scheduled for final approval today.
If that occurs, a majority of House members either would have to approve the plan as is or the chambers would need to forge another compromise. In either event, then they would need McCrory’s blessing. So far, the governor’s office has been silent on the proposal.
JLF’s John Hood discusses resolving the tax reform impasse here.