A video about the proposed tax reform is here.
The gist: It’s meant to reduce taxes $1 billion over three years and boost the capacity of private economy to create jobs.
Sen. Phil Berger said, “we’re falling behind” and high taxes are a big reason.
“The current system is riddled with exemptions and loopholes,” Berger said. “It’s not fair.”
The plan will reduce income tax, corporate tax and sales tax rates.
Sales tax change: “It broadens the base to many services.”
New: a zero bracket for income taxes, at the lower end of the income scale. So no tax for income below $10,000.
It will create a steady stream of income, in which everyone pays a fair share. “A broader sales tax base is much more stable, it is fairer overall” and is easy to predict, he said.
“There are a variety of special interests who wish to preserve the status quo,” he noted.
Sen. Bob Rucho: The old tax reform was based on a Depression-era economy, and the state is lagging behind economically.
“We’re also seeing a decline in the sales tax base,” he said, as economy goes from goods to services.
The plan will register every business, to bring companies out of the underground economy.
Note: there are drafts of bill, but plainly debate is ongoing.
“The existing system has failed us,” Rucho says, noting high unemployment and lagging growth.
“Our current tax system is not working,” Berger said. “Some change is necessary.”