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NC lawmakers, McCrory to make tax announcement

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RALEIGH, NC (AP) -- Leaders in the General Assembly and Gov. Pat McCrory are going to make a statement about the tax negotiations that have been going on for several weeks.

McCrory, Senate leader Phil Berger and House Speaker Thom Tillis scheduled to meet Monday afternoon at the old Capitol building for what Berger's office called a "major announcement on tax reform."

House and Senate Republicans worked into the weekend to craft a deal between competing tax plans between the chambers. Tillis, Berger and McCrory pledged several months ago to work toward modernizing and simplifying the tax code this year, largely by cutting tax rates and eliminating tax exemptions that critics call loopholes.

The tax negotiations have delayed the passage of the state budget.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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They did achieve

Their main objective was simplification which they did achieve.
I am somewhat disturbed by the overall thrust of the plan which is clearly starve the beast. This cuts revenue by $2B over 5 years so it's apparent they will be forced to undertake more draconian budget cuts.
Where will they come up $400M in cuts for 5 years?
My guess is they will take a clever to the UNC system - and that story yesterday about UNCW's salary issues will not help their cause at all. I would guess you will see an end to many higher paid positions AND the end of the less attended sports programs.
I also think you may see an end or a large reduction in movie incentives. These "company's" come to NC, form temporary corporations get tax rebates from NC for filming and employ people only on a part time basis. In the last discussion about movie incentives the Legislature had very mixed opinion of them. This time around my guess is they will save the money or give it to the Governor to attract more permanent full time jobs.
But they also are still clinging to "tax cuts stimulate revenue" policies. All tax cuts do is make it less risky to hire people. Product demand for goods and services causes hiring to take place.
Overall the plan for simplification is good but I think they went too far in revenue reduction. An alternative could be as simple as adding 0.25% to all announced cuts to reduce the impact on revenue.
It will be interesting to see what happens. We will now rank #5 in the SE states for corporate taxes. If we are in the middle of the pack, what will make us stand out from the rest? Infrastructure? Ours is not good. Education? They are taking a sledgehammer to the UNC system. Employees? We got plenty of unemployed here but are they educated enough to attract a new company?
It seems like in our rush to cut taxes and spending we are also cutting the OTHER things that would make us more attractive to prospective employers?

Vog

The tax deal

Seems good on paper.
A good move by McCrory and the Legislature on this one

Vog

But we need to see and understand the whole tax package.

While the headlines and the article make this "sound" like a "good deal", we need to see what loopholes were removed and what additional taxes have been imposed. As I recall, they were adding over 130 additional taxes on non-tangible services that were previously untaxed.
Sorry, but anytime we have a politician claiming to do something good for the "citizen", especially "cutting" tax rates, I run to get the cork and plug it up as soon as possible, because I KNOW it's coming and I know where they're gonna shove it!