House Lawmakers Sanction Corporate Tax Loophole

Jun 18, 2011

House lawmakers have passed a measure that would restrict the ability of state officials to go after corporations that may be underreporting their income in the Tar Heel state.

Republican Majority Leader Paul Stam says House Bill 619 will help create jobs by encouraging companies to do more business in North Carolina.

Paul Stam: "The passage of this bill is probably more important to the economic development and prospects of this state as far as seeking investment from other states or even other countries than everything else we do in economic development."
An amendment to the bill would create a loophole for national and multi-national companies to avoid paying corporate income taxes in North Carolina. Democratic Representative Jennifer Weiss says it's estimated that loophole would cost the state a lot of money.

Jennifer Weiss: "That's thirty-two million bucks that we're telling these folks- go ahead, cheat us, it's legal."

The bill could have a final vote in the House today.