Governor, Senate, House Reach Historic Deal on Tax Reform

Press Release Governor, Senate, House Reach Historic Deal on Tax Reform FOR IMMEDIATE RELEASE                                                                            919-814-2100 Monday, July 15, 2013                                                                              govpress@nc.gov Raleigh, NC– Governor Pat McCrory, Senate President Pro Tempore Phil Berger (R-Rockingham) and House Speaker Thom Tillis (R-Mecklenburg) announced late this afternoon they have reached a historic agreement on tax reform.   North Carolina has the fifth-highest unemployment rate in the country and needs tax reform to compete with neighboring states for job creation. “All of us were elected to change the status quo here in Raleigh and address problems head on,” said Governor Pat McCrory. “One of the biggest challenges we faced coming into office was working to help create jobs in the existing environment. This tax reform plan is a major step in restoring confidence in the economy so that employers start hiring again, and it will help us continue to attract new employers.  Just as important, this tax reform will allow North Carolinians to put more money in their pocketbooks so that they can spend and invest in North Carolina.” The tax reform agreement provides fiscally-responsible tax relief to all North Carolinians. It will lower income tax rates for all taxpayers to 5.8% in 2014, allowing North Carolina families to keep more of their hard-earned dollars. The corporate tax will be reduced to 6.0% in 2014 to make North Carolina more attractive to job-creators. “Reforming a state’s tax code is no easy task in the face of a barrage of special interests fighting to preserve the special treatment they receive at the expense of all taxpayers,” said Senator Phil Berger. “We’ve seen several other states – Kansas, Louisiana and Nebraska – give it their best shot but miss the mark. I’m proud of what we’re achieving here in North Carolina – we are truly a positive model for the rest of the nation.” The tax reform proposal is fiscally responsible and provides reasonable revenue growth every year to meet the state’s budget needs.  Since tax reform is expected to grow the state’s economy and bolster the tax base, further rate reductions could be triggered by revenue growth in 2016 and 2017.  However, if for whatever reasons the tax revenue does not grow, the further reductions will not be triggered, ensuring that state revenue is preserved for public services. “This plan will provide tax relief for working families throughout North Carolina and will enable businesses to create jobs for our citizens,” said Speaker Thom Tillis.  “Our state will become more competitive because of this tax reform legislation, and North Carolinians will have more dollars in their pockets.  I congratulate everyone who had a role in this historic agreement, especially Representatives David Lewis and Julia Howard, who led this effort in the House.” “This plan reducing both personal and corporate income taxes combined with the General Assembly’s successful efforts last session to repeal the temporary sales tax accomplishes broad based tax relief that is unmatched in North Carolina’s history,” said Governor McCrory. “No other state has accomplished this level of tax reform this year and I would like to commend Speaker Tillis and Senator Berger for their hard work and congratulate them on reaching this agreement.” Tax Reform Proposal Highlights Personal Income Tax: · Reduces and simplifies the 3-tiered state personal income tax from the current maximum rate of 7.75% and minimum rate of 6% to 5.8% in 2014 and 5.75% in 2015.    · Increases the standard deduction for all taxpayers, applied to the:  1.     ​First $15,000 of income for those married filing jointly 2.     First $12,000 of income for heads of household 3.     First $7,500 of income for single filers; · Retains the state child tax credit and increases it for families making less than $40,000; · Offers a $20,000 combined maximum deduction for mortgage interest and property taxes; · Makes charitable contributions fully deductible; · Protects all Social Security income from state taxes. Corporate Income Tax: · Reduces the corporate income tax from 6.9% to 6% in 2014 and then to 5% in 2015 a 29% rate reduction. · If the state meets revenue targets (i.e. if tax revenue grows due to a growing economy), the corporate income tax will drop to 4% in 2016 and 3% in 2017. Other Highlights: · Caps the state gas tax;  · Eliminates North Carolina’s death tax; · Preserves the sales tax refund for nonprofits. ###

CLC: March 1-2, 2013, Civitas Institute—Conservative Leadership Conference

March 1-2, 2013, 8:00 am-5:00 pm: John W. Pope Civitas Institute Conservative Leadership Conference

As the only statewide conservative conference in North Carolina, the two-day event is designed to educate and empower conservatives on how we can restore our state to greatness.

Dan Forest and Phil Berger To Speak at CLC

With this year's lineup of conservative leaders, VIP tickets are almost sold out!

The Civitas Institute is pleased to announce that Lieutenant Governor Dan Forest and Senate President Pro Tempore Phil Berger are now on the agenda to speak at this year's Conservative Leadership Conference (CLC)! The CLC will take place on March 1 and 2 at the Crabtree Valley Marriot Hotel in Raleigh.

In November, Dan Forest was elected to be just the second Republican Lieutenant Governor in over 110 years. This incredible accomplishment came as a result of a statewide grassroots campaign. Forest is a business leader, having served as Office President and Senior Partner at Little Diversified Architectural Consulting. In 2010, Berger, who serves the state's 26th Senate District, was elected the first Republican Senate President Pro Tempore in over a century.


Senator Berger and Lt. Governor Forest join former U.S. Sen. Jim DeMint, Dr. Ed Feulner, Michelle Malkin, Jason Lewis, Dr. John Lott, and NC Speaker of the House Thom Tillis on March 1 and 2 in what promises to be the biggest and most exciting Conservative Conference in North Carolina's history. Stay tuned for even more speaker announcements next week!

Remember, VIP tickets won't last much longer. Hurry to www.CLC2013.com before Monday to purchase yours for only $225 for access to the exclusive VIP reception along with all of the conference's keynote speeches, training sessions, and meals!

Register:  https://www.nccivitas.org/events/?ee=68

LEGISLATIVE UPDATE September 14, 2011

Thanks to NC Federation of Republican Women and Brenda T. Formo for this update!

NC General Assembly


1. Defense of Marriage Amendment (SB514)

The Defense of Marriage Amendment passed in the Senate in a vote of 30 to 16 with 4 excused absences on Sep 13. All Republicans present voted for the bill and all Democrats present voted against it.

The four excused absences were:

•Republican Senator Fletcher Hartsell (Cabarrus, Iredell). Recall that we asked that you call him because we had information that he might waver on the vote.
•Democrat Senators Eric Mansfield (Cumberland); Michael P. Walters (Hoke, Robeson); and Stan M. White (Beaufort, Camden, Currituck, Dare, Hyde, Pasquotank, Tyrrell, and Washington)
 
SB514 Defense of Marriage Act states that "Marriage between one man and one woman is the only domestic legal union that shall be valid or recognized in this State. This section does not prohibit a private party from entering into contracts with another private party; nor does this section prohibit courts from adjudicating the rights of private parties pursuant to such contracts."


The bill passed in the House on Monday, Sep 12th.

The Defense of Marriage Amendment will be on the ballot in the first primary in 2012, which is May 2012. The people of NC will determine its outcome.

Senator Phil Berger, President Pro-Tempore, said of the Senate vote: "We think the people of this state--not judges, bureaucrats, or politicians--should define marriage, which I personally believe should be between one man and one woman. We look forward to eight months of healthy debate before voters decide this issue at the polls."

(Thanks again to everyone who worked for this amendment so that the people can vote on it. See the NCFRW Special Report dated Sep 13, 2011.)

2. Speaker/Pro Tem Term Limits (HB823)

The bill is an amendment to the NC Constitution to "limit the Speaker of the House of Representatives and the President Pro Tempore of the Senate to serve for four consecutive two-year terms in those offices."

•On Monday, Sep 12, the Senate passed the bill in a vote of 35 to 9 with 1 not voting and 5 excused absences.

All Republican Senators voted 'Yes," except Senator Hartsell who had an excused absence.  Five Democrats voted "yes:"

Senator Daniel G. Clodfelter (Mecklenburg)
Senator Malcolm Graham (Mecklenburg)
Senator Ed Jones (Bertie, Chowan, Gates, Halifax, Hertford, Northhampton, Perquimimans)
Senator Josh Stein (Wake)
Senator Don Vaughan (Guilford)

Nine Democrats voting "no:"

Senator Bob Atwater (Chatham, Durham, Lee)
Senator Doug Berger (Franklin, Granville, Vance, Warren)
Senator Dan Blue (Wake)
Senator Charlie S. Dannelly (Mecklenburg)
Senator Eleanor Kinnaird (Orange, Person)
Senator Floyd B. McKissick (Durham)
Senator Martin L. Nesbitt (Buncombe)
Senator William R. Purcell (Anson, Richmond, Scotland, Stanly)

Senator Gladys A. Robinson (Guilford)

Senator Stan White (Beaufort, Camden, Currituck, Dare, Hyde, Pasquotank, Tyrrell, Washington) did not vote.

The following Democrat Senators had excused absences: Linda Garrou (Forsyth), Clark Jenkins (Edgecombe, Martin, Pitt); Eric Mansfield (Cumberland), and Michael P. Walters (Hoke, Robeson).

•In the House on Tues, Sep 13 the bill passed in a vote of 118 to 0 with 1 not voting and 1 excused absence. Democrat Representative Marcus Brandon (Guilford) did not vote; and

Republican Representative D. Craig Horn (Union) had an excused absence.

Star News reported that Senate leader Phil Berger said,"the change approved Monday would keep any single person from holding power for decades." Star News added, "His predecessor as president pro tempore, Sen. Marc Basnight, D-Dare, served a record 18 years at the post."

•The Term Limit Amendment will be on the November 2012 ballot for the people of NC to decide.

September 14, 2011 Calendar for NC House

The following vetoed bills may be reconsidered today: Voter Photo ID (HB351), the Energy Jobs Act (SB709), No Dues Checkoff for School Employees (SB727), and Water Supply Lines/Water Violation Waivers (HB482).


US Congress

1. Leahy-Smith America Invents Act regarding patent awards. The Senate passed the legislation in a vote of 89 to 9 with 2 not voting on Sep 8. Both Senators Burr and Hagan voted for the bill.

2. Motion to Proceed on Debt limit disapproval - The Senate rejected the motion in a vote of 45 to 52 with 3 not voting. The motion would have initiated a resolution to disapprove a $500 billion debt limit increase, according to MEGAvote.

"Under the budget law enacted on August 2, the debt limit was increas[ed] by $400 billion. A second increase of $500 billion will take effect unless Congress passes a disapproval measure."
(Megavote)

Senator Burr voted for the Resolution to stop an automatic increase of $500 billion to the debt limit. Senator Hagan voted against the Resolution to stop the automatic $500 billion increase.

The bottom line is that Senator Burr does not want the debt limit automatically increased another $500 billion; and Senator Hagan agrees with an additional $500 billion added to the debt limit already enacted ($400 billion), resulting in a total of $900 billion in increased debt limit to date.

3. "Empowering Parents through Quality Charter Schools Act" HR2218 - On Sep 13, the House passed the legislation in a vote of 365 to 54 with 12 not voting. The legislation replaces current laws on charter schools with special attention to grants. All NC Representatives voted for the legislation.


Sources: ncga; Press Release from Senator Phil Berger, Sep 13, 2011; Star News Online, "Gay marriage ban will be on May ballot in NC," by Gary D. Robertson, AP, Sep 13, 2011 and "House, Senate versions on NC leader limits differ," AP, Sep 12, 2011; senate.gov; house.gov; Megavote: NC 6th, 9/12/2011.

Follow the Money

Governor vetoes bill in order to protect incentives giveaways


This week the governor vetoed the Legislature’s budget-savings bill in order to protect money in some of the state’s largest incentives funds. Shrouded in secrecy, Perdue’s office sent out a message on Twitter that pointed to several potential projects across the state that they said could be jeopardized if the governor’s deal sweeteners were taken away. The names of the companies being recruited weren't mentioned. The Twitter message went on to say there were "several other, new projects promising 900 jobs and a more than $100 (million) investment that may need a grant to seal the deal." Referencing the “but for” test, Republican lawmakers have said their bill would still allow Perdue to come to the Legislature to approve incentives to lure businesses if they are really necessary during the remainder of the fiscal year. “Perdue's veto proves she'd rather roll the dice with your tax dollars than protect jobs now and right-size state government," tweeted Senate leader Phil Berger.  READ MORE:


http://us1.campaign-archive2.com/?u=aabacd8f9a906ae57d21cb4b1&id=5aa6291a9d&e=f930f34c6b