Under the Dome has a nice rundown of the tax package that passed in the House Finance Committee late last night.
Included is the projected amount of additional revenue each tax increase will supposedly generate.
Here's how the tax proposals fared in the final vote:
* New income tax brackets for the state's wealthiest residents. The current
rate for incomes greater than $100,000 is 7.75 percent. The new brackets would
be 8.25 percent for incomes $200,000 to $500,000 and 8.5 percent for incomes
greater than $500,000. Tax would raise $256.7 million.
* Expand the franchise tax to limited liability companies. $59 million.
* Require corporations with operations in multiple states to file tax returns
showing their activities in all states. Officials say the change would make it
more difficult for corporations to hide their North Carolina profits. $176.2
* Throwback rule: Sales of property by a corporation to the federal
government or a purchaser in a state that cannot tax the sale would be included
in the corporation's corporate tax calculation. $5.9 million.
* Change Bank Interest Deduction: Removes a rule that allows banks to deduct
interest expenses incurred in producing tax-exempt interest income. $2.6 million
* New categories of sales tax: Sales tax would be paid on warranties,
installations and repairs. The addition includes car repairs, non-Postal Service
deliveries, movie tickets, digital downloads and other items. $238.1 million.
* Increase sales tax rate by 1/4 cent. $195 million.
* 25-cent per pack tax on cigarettes and similar tax on other tobacco
products: $122.6 million. Killed.
* Tax increase on beer. $25.5 million. Killed.
Perhaps the highlight of this otherwise depressing discussion of tax hikes is this passage:
entertainment," said Rep. Bill
Faison, an Orange County Democrat who proposed removing beer from the tax