Tag search result

State Superintendent of Public Instruction June Atkinson said Monday she will recommend teachers be exempted from paying income taxes.

The tax exemption for charter school and traditional public school teachers would cost the state $300 million, according to her figures.

The House and Senate budget proposals do not include raises for teachers or state employees. Atkinson said she would not be making the recommendation if the legislature had provided for raises.

The House and Senate will negotiate changes in the state tax code this week. No proposal has included an income tax exemption for teachers.

TODAY AT THE STATEHOUSE: The House tax plan returns for an unscheduled stop in another committee Wednesday morning. Look for lawmakers to possibly strip a provision added the day before by Finance Committee Chairwoman Julia Howard to remove the cap on home-related tax deductions. Continuing the fast timeline, bill sponsor David Lewis said the measure could hit the floor this week. The bill to fast-track fracking will get a vote in a House committee at 10 a.m. The full House will take a final vote to repeal the Racial Justice Act and consider a bill to redraw the Wake County school district boundaries. The Senate will work through a lengthy calendar that includes two beer bills and a measure requiring biodegradable plastic bottles to carry certain wording on their labels.

LT. GOV LAUNCHES COMMON CORE FIGHT: On Tuesday, North Carolina Lt. Gov. Dan Forest posted a nearly four-minute video on YouTube, titled “My Concerns with Common Core.” In it, he said he has serious qualms about the state’s “rush to implement” the K-12 standard. Common Core was rolled out in North Carolina’s classrooms last fall. Forest vowed a critical review starting Wednesday during orientation for new members of the State Board of Education, suggesting “perhaps a fresh set of eyes will give us reason to pause, and make sure our state looks, before we leap into the Common Core.” 

***Additional details on Common Core, Thom Tillis' U.S. Senate bid and much more below in the Dome Morning Memo.***

A House panel approved a sweeping tax bill Tuesday with a $1.5 billion price tag, rushing the vote so quickly it left many lawmakers stunned.

In an hour-long meeting, lawmakers discussed three amendments and never debated the actual bill to add a sales tax to numerous exempt services, such as car repairs, to pay for moderate cuts in the personal and corporate income tax rates – the biggest overhaul of the state’s tax system in at least a decade.

The rush, orchestrated by House GOP leaders, and a discussion that split political loyalties underscored the difficult path ahead for the top Republican legislative priority this session. The bill now moves to the full House but the consternation may prove inconsequential because it varies widely from a plan sponsored by Senate Republicans that further cuts taxes and extends the sales tax to even more services.

The one major change to the House plan approved by the Finance Committee eliminated caps on certain tax deductions and added roughly $500 million to the bill’s cost.

UPDATED: The complex effort to overhaul the state’s tax system became more complicated Thursday as three competing bills were presented to lawmakers entering the final month of the legislative session.

Senate Republicans, led by President Pro Tem Phil Berger, are offering the most ambitious legislation to expand the sales tax to more than 100 services, food and prescription drugs, in exchange for cutting personal income taxes from the highest rate of 7.75 percent to 4.5 percent. It represents an overall tax cut, phased in over the course of three years, potentially reducing state spending by more than $1 billion over three years.

But Senate Bill 677 is facing considerable opposition from special interests concerned about how it eliminates all existing tax breaks and from outside organizations who point to analyses showing that it would likely raise taxes on a majority of people in the long run.

In presenting his bill to a Senate panel, Sen. Bob Rucho, a Charlotte Republican, didn’t mention any tax rates – instead spending about 10 minutes lashing out at lobbyists who packed the committee room.

TAX DAY: State lawmakers will tackle this session's biggest topic Thursday, with Senate leaders expected to put their tax overhaul plan into writing and House lawmakers taking a first look at a bill backed by House Speaker Thom Tillis. No votes are expected on either but much discussion is expected. One interesting tidbit about the House plan: the absence of Rep. Julia Howard, the finance chairwoman. Howard demurred when asked why she wasn't involved in the legislation. "Read what you want into it," she said. Asked what she thought about the plan, which is being spearheaded by Elections Committee Chairman David Lewis, Howard said, "I haven't read it yet."

The key in the Senate is the language of the bill. Senate GOP leaders -- including President Pro Tem Phil Berger -- have been working on it since outlining a framework and debuting a spiffy website a couple weeks ago. No major changes are expected, but the question is how the final language addresses the possibility that many would see a tax hike over the long-term under the plan.

McCRORY PREPARES FOR HIS BIG SUMMER ROLE: Weather forecasters are calling for an active Atlantic hurricane season -- putting Gov. Pat McCrory into a key role as disaster chief in his first year on the job should one hit North Carolina. McCrory will talk hurricane prep Thursday at a news conference. Saturday marks the start of the season, which ends Nov. 30.

***A full roundup of North Carolina political news and analysis below in the Dome Morning Memo.***

EDWARDS REGROUPS: Former presidential contender John Edwards has reactivated his license to practice law and is setting out on the speaking circuit, the Associated Press reports. The former U.S. senator and 2004 Democratic vice-presidential nominee is scheduled to appear June 6 at a private retreat in Orlando, Fla., for lawyer clients of the marketing firm PMP.

Edwards has remained largely out of public view since his acquittal in May 2012 on one charge of campaign finance fraud. A judge declared a mistrial on five other criminal counts after jurors couldn’t agree whether Edwards had illegally used campaign money to hide his pregnant mistress as he ran for president in 2008. An itinerary says Edwards will speak for about 45 minutes as part of a program titled “Historic Trials of the Century.” Edwards earned millions as a personal injury lawyer before entering politics.

***Thanks for reading the Dome Morning Memo. If you're here, you survived crossover. Get a wrap up below. Now hold your hats for the final weeks of the legislative session. Send news and tips to dome@newsobserver.com.***

The divide between legislative Republicans about how to revamp the state’s tax code became clear Thursday, as House leaders unveiled a dueling plan, calling it a more measured approach.

The House legislation (Read it here.) offers smaller income tax cuts in exchange for fewer new taxes on services. Supporters pledged it would give a break to all taxpayers but the numbers remain unclear. It contrasts greatly with a sweeping Senate proposal that some experts believe could leave many people with a tax hike, a point its supporters dispute.

“We think our tax plan is a lot simpler in terms of the expansion of the sales tax base,” said state Rep. David Lewis, a Dunn Republican leading the effort. “We think it makes sense to people.”

The House Committee on Elections will hold a public hearing on requiring voter ID tomorrow, and it seems a lot of people want to talk about it.

The committee had an online sign up for 50 people. It turns out more people than that want to talk. Those who want to speak and didn't make it on the online list may show up at 3 p.m. at room 643 in the Legislative Office Building to sign up. Those who signed up online will get a number when they arrive at room 643 that indicates their speaking order. The committee meeting starts at 4 p.m.

Legislators are ready for an overflow crowd. People who can't find seats can go to room 544 in the same building

Rep. David Lewis, a Harnett County Republican and chairman of the committee, said he was prepared for the committee to go until 9 p.m., when House rules say they have to quit.

"Folks who take the time to come, we'll do the best to hear what they have to say," he said.

The proposal to require people to show a photo ID when they vote is controversial. Proponents says it prevents voter fraud, while opponents say that it discriminates against elderly voters, African-American voters, and young voters.

House Republicans announced plans to Tuesday to begin moving the politically divisive voter photo ID bill through the legislature, saying they would slow walk it to give all parties the opportunity to comment on it.

GOP lawmakers, who have enough votes to pass the measure, disclosed a schedule that will begin with a public hearing on March 12th followed by two House committee meetings in which expert testimony will be heard. The bill will likely be introduced in late March and voted on by the House in mid-April.

“We are going to go through a very deliberative, response-ful and interactive approach through public hearings so that we arrive at a policy that is fair and that takes into account legitimate reasons why voters may not have an ID and puts into effect a solution a way in which those Ids can be issued,” Tillis said at a news conference attended by about 30 GOP House members.

State Rep. David Lewis, a committee chairman, is running for House GOP leader. He is making calls to Republican lawmakers saying he wants to serve alongside Ruth Samuelson. 

Republican are considering splitting the majority leader post. Lewis wants the operations end of the job that would run the daily calendar and manage the caucus agenda. Samuelson is campaigning for the bigger picture strategic job.