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NC tax plan finalized, heading to McCrory's desk

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GARY D. ROBERTSON
Associated Press

RALEIGH, NC (AP) -- The North Carolina legislature has finalized its tax overhaul deal and now will send it to Gov. Pat McCrory's desk for his expected signature.

The Senate voted 32-17 Wednesday for a tax overhaul deal it worked out last weekend with McCrory and House GOP leaders. The House gave its final approval a couple of hours earlier. The initial round of legislative votes was held Tuesday.

McCrory already has publicly endorsed the bill, which would reduce individual and corporate income tax rates and adjust slightly which transactions are subject to the sales tax.

Once McCrory signs the bill, most changes will take place in January 2014 and July 2014, although the repeal of North Carolina's estate tax begins this year.

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 This material may not be published, broadcast, rewritten or redistributed.)

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Another Brilliant Move!!

Corporations pay less in taxes, the rich pay a lower tax rate and thousands of us that will or have reached retirement will get to make up the short fall by paying heavier and broader sales taxes! Wonder if our supplement polices will pick up the service tax on doctors fees when that comes. It won't happen this year but it's coming. Services like Real Estate, Attorneys, Doctors, the guy that fixes your car, hell even the car wash and the guy that cuts your grass will charge you taxes. But remember Republicans never raise taxes??? This reminds me of another stupid fee supported by Sen. Bill Rabon to ad a fee to all Hybrid and Electric cars. What a brilliant move that ads a whopping $15,000.00 annually to the road taxes and discourages the purchase of cars that cost $30,000.00 in favor of high mileage cars that cost only $15,000.00. Either way we lose at the pump but at 3% sales tax at the dealership we get it back on Hybrid and electric purchases. Why? can't Republicans be smarter??

The problem

As I see it stem from two or three issues.
First - Medicaid. It's already busted McCrorys first budget. He's had to cut current spending within the state to cover shortfalls. These shortfalls are probably going to continue for awhile. He claims he will change Medicaid to private or voucher types systems however, those changes have to be approved by the Federal Government, and that is unlikely. My guess is that at some point, the Medicaid expansion will get approved as the FED picks up most of the cost of Medicaid under that program. We are seeing more and more GOP governors considering this, including Jan Brewer. They "see" the writing on the wall. McCrory might want to consider this as well.
Second - there is a continued belief that lowered taxes increases revenues. Have we not learned ANYTHING from this recession? People were employed and paying LOTS of payroll taxes but the reason they were employed was clearly based upon the fact that people had access to easy money. Housing values turned homes into ATMs with people borrowing against equity like wildfire. Loans were incredibly easy to get for individuals, home owners, and businesses. Banks were making it way too easy to get money. When that stopped, so did the economy, and the only people that could spend were those that had little or no debt. People topped buying cars, homes and boats and all those supporting industries suffered. Lowered taxes do not stimulate the economy - if it did we wouldn't be in this mess now.
Third - this is primarily a tax cut with a slight restructuring of the NC tax code but it is my no means tax reform. But this cut leads to a $2B deficit in 5 years. Where will those cuts come from? Anyone got a clue? This is clearly the starve the beast mentality of the GOP.
These tax cuts make NC the 5th lowest tax burden state in the south east. I hope this attracts some company's here but, even at that, it will then put us ONLY on equal footing so far as taxes go. What about NC's infrastructure - is it any better or worse than the other southeastern states? Education? We are taking a cleaver to the UNC system - will that work against us?
Between Medicaid and the decreased revenue I see the budget shifting into imbalance pretty quickly and even if we did get several company's to come here with 3,000 to 5,000 jobs that won't even dent the states unemployment rate. Rem,ember, 70,000 lost UI benny's June 30. 140,000 MORE lose them between now and Dec 31. There are 422,000 unemployed in NC.
three to five thousand jobs just doesn't cut it, unfortunately

Vog

I wonder

Where they will come up with the cuts to cover the $2B shortfall this creates over the next 5 years.
And please, don't say the reduced taxes will spur revenue growth. That particular theory hasn't worked in a very long time.
Now we will be 5th lowest in corporate taxes in the SE part of the U.S..
Does this mean our other amenities will play a role in attracting company's here? Our infrastructure is crumbling. They're gutting our educational system. They are openly lobbying for polluting fracking operations to begin here.
Or is Gov Smirkey going "all in" with incentives in a grand scheme to "pay to play" here in NC? Given our new $2B shortfall where will he come with incentive monies?

Vog

President Regan Said

Republicans don't say bad things about Republicans. But, Don't you find it funny that Republicans have now had over 5 hours to defend against our statements and not one has lent support to the House, the Senate or as you say Ole Smirkey. I guess they just hide in the woodwork like Wake Forest Fans.

I raise you one.....

Dwight D. Eisenhower
“Should any political party attempt to abolish social security unemployment insurance and eliminate labor laws and farm programs you would not hear of that party again in our political history. There is a tiny splinter group of course that believes you can do these things. Among them are a few other Texas oil millionaires and an occasional politician or business man from other areas. Their number is negligible and they are stupid.”
**********************************************************
Dems are not immune to speeches coming back to bite them in the butt.
But in today's YouTube world I'm surprised that Gov Liar signed the new abortion law.

http://www.youtube.com/watch?v=XJkGj_SbpbU

And many wonder why I call him Smirkey? Or Gov Liar?
"None".......good grief

"Gov how many brain cells have you got left?
"none"

"Gov how many re-election campaigns will you win"?
"None"

"Gov how many jobs bills have you signed"?
"None"

Vog