Taxes

Flickr/Washington State House

 

Governor Pat McCrory announced his $22.3 billion proposed budget plan this morning, which represents a 2.8 percent increase in total state spending. He shared key provisions of his proposal, like an average 5 percent pay increase for teachers, but he will not release his full, detailed budget proposal until next week.
 

Photo: Jerome Bias of Mebane drtives a 2001 Volkswagen Jetta
Jorge Valencia

The North Carolina General Assembly approved a two-year budget that includes a plan to lower income and corporate taxes and create new service taxes. Top Republicans say these measures will help create an environment in which the state’s economy will grow, while some Democrats say it unfairly shifts economic burden from large corporations to middle- and low-income families.

The budget includes more than 20 pages outlining changes to North Carolina's tax system. Part of the plan:

State Senate chamber
Dave DeWitt

North Carolina Senate Republicans are looking to give voters the opportunity to add spending and income tax caps to the state’s constitution.

NC General Assembly; State Legislature.
Dave Crosby / Flickr Share-Alike

The North Carolina Senate gave preliminary approval on Wednesday afternoon to a two-year budget that would cut funding for thousands of public school teaching assistant positions, and would make significant policy changes to the state's tax code and Medicaid program.

The proposed $21.5 billion budget, which represents an almost 2 percent increase from the current year and was approved by Republicans along a party-line vote of 30-19, is scheduled for a final vote on Thursday.

N.C. General Assembly, State Legislature
Dave DeWitt

The first law Gov. Pat McCrory signs this year could be an agreement between the House and Senate to slowly drop North Carolina's tax on gas.
 

Under a plan approved by top members of each chamber last week, the gas tax would fall on Wednesday to 36 cents from 37.5 cents, then to 35 cents in January and to 34 cents in July 2016.

The measure would eliminate a plan previously approved by lawmakers that, according to legislative analysis, would've cut the gas tax significantly more, potentially costing dozens of jobs at the state Department of Transportation.

Photo: Income taxes
Flickr user Laura Gilmore

Top North Carolina Republicans say they want to cut personal and corporate income tax rates, continuing to lower rates after a round of breaks in 2013.
 

Three powerful members of the Senate rolled out a plan this week that they say will cut personal and corporate income taxes by $1 billion dollars each year. The plan would:

Sharing economy illustration
North Carolina General Assembly

North Carolina lawmakers are taking their first look at how to regulate networks of individuals who buy and sell services between each other, a billion-dollar global industry that already operates in dozens of cities across the state.

One of the peer-to-peer economy’s biggest exponents, Airbnb, accounts for about 2,700 residential rental listings across North Carolina, and drivers who pick up passengers with their personal cars using the application Uber operate in ten cities here.

Unemployment lines
Wikimedia

The U.S. Department of Labor has waived an anticipated federal unemployment tax increase on North Carolina businesses, as the state continues to pay millions it borrowed from the federal government to pay for state insurance benefits. 

The waiver reduces employers’ tax hike for the 2014 tax year up to $65 per employee, or about $180 million collectively for employers across the state, officials said.

Power plant in Goldsboro, NC.
http://www.flickr.com/photos/dukeenergy/11441208065/

  

Private utilities charge their customers a small monthly fee to compensate for the corporate income tax they pay.

The North Carolina General Assembly cut that tax in its latest session, and the state Utilities Commission originally ordered a smaller fee to reflect the changes. But the commission recently reversed that, saying companies could go back to charging at the higher rate and keep the extra money.

Their decision led to a rare, strongly-worded dissent from the commissioners who voted against it.

Photo: A camera attached to a remote control airplane
Chris Goldberg / Flickr/Creative Commons

A series of laws passed by the General Assembly this summer will go into effect today, affecting areas of construction, pollution and privacy. The variety in legislation reflects the broad reach of the state House and Senate this year.

Coal Ash

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