House Tax-Law Writer Downplays Differences With Senate Plan

May 30, 2017

The latest on the North Carolina House rolling out more portions of its state budget proposal (all times local):

1:15 p.m.

A tax-law writer for the North Carolina House is downplaying differences with the Senate in their respective state budgets over which taxes to cut or incentives to offer.

House Republicans on Tuesday rolled out portions of their state spending plan for the next two years that address taxes, fees and government pensions. The House plan would increase the standard deduction for tax filers — meaning more of their income would not be subject to state taxes. The Senate budget approved earlier this month would raise the deduction even higher, but also cut individual income tax rates.

The House proposal also repeals a sales tax on certain manufacturing machinery and would create new business-related tax breaks.

Finance Committee co-chairman John Szoka (soh-KA) acknowledged the differences with the Senate but said the two chambers seek the same goals of tax moderation and modernization.
 
3:40 a.m.

More differences between House and Senate Republicans about how North Carolina should spend and tax for the next two years are coming out.

House GOP leaders are prepared to unveil Tuesday the rest of their state budget proposal, particularly their tax package and pay increases for teachers and state employees.

Large parts of the spending plan run through committees last week showed House Republicans are opposed to several significant cuts or policies in the Senate budget plan approved earlier this month.

House Republicans also have signaled their tax reductions won't be as large as the Senate seeks.
The House budget should pass the chamber by the end of the week, setting up negotiations with the Senate for a final budget bill for Democratic Gov. Roy Cooper to consider.