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HOUSE TO UNVEIL TAX PLAN OUTLINE:House Republicans plan to offer their own North Carolina tax overhaul plan Thursday that would reduce personal and corporate income tax rates and expand the sales tax to cover more services. The proposal's scope is much narrower than what Senate counterparts offered as GOP legislators try to fulfill a commitment to carry out tax reform this year.

The plan attempts to simplify income taxes and reduces the number of income tax brackets from three to one, according to the proposed legislation obtained by The Associated Press. House Republican leaders want to reduce slightly the combined state and local sales tax consumers in most counties pay from 6.75 percent to 6.65 percent. They also would subject the sales tax to a handful of new services such as automobile repairs and installations for personal property and warranty and service contracts, the bill says. In contrast, the Senate proposal unveiled last week would make the sales tax base one of the broadest in the country. More here.

NORQUIST TO BLESS SENATE TAX EFFORT: Americans for Tax Reform leader Grover Norquist will stand with Senate leader Phil Berger at a 9:30 a.m. press conference Thursday to talk about the Senate's tax rewrite. The visit is being coordinated by Americans for Prosperity, an advocacy group that pushing hard for a major tax overhaul measure this session. Opposition groups already are framing the visit, saying Norquist will support a bill that could raise taxes on a majority of people in the long-term. A luncheon with tax activists outside the legislature will follow later in the day.

Good Morning! This Dome Morning Memo is (unofficially) brought to you by Krispy Kreme donuts and coffee -- which is much needed after the House worked near midnight to beat the crossover deadline on a bevy of controversial bills in a 10-hour session. If you went to bed early, click below for all the North Carolina political news and analysis.***

THE NAKED REALITY OF POLITICS: Much of politics is about money. But it's rare to see it so plainly stated in black and white: "We didn't give them money because we liked them," sweepstakes operator William George told the Associated Press. "We just knew they were powerful people up in Raleigh and they could get done what we wanted to get done. You give them your money and they're supposed to do what they say they're going to do." (More on the story below.)

TODAY IN POLITICS: The current State Board of Elections meets for the final time at 9 a.m. today before Gov. Pat McCrory's new appointees take office Wednesday. The board had planned to launch a formal investigation into the gambling money -- received by the governor, top GOP legislative leaders and some Democrats. But board members backed off the idea now that they are lame ducks.

AT THE STATEHOUSE: A House committee will consider a bill to limit pre-K programs, in part to children under the federal poverty line. The full House meets at 2 p.m. and will consider a controversial firearms bill to allow guns in restaurants and bars that serve alcohol. The UNC system is also opposed because it allows guns in cars on college campuses. The Senate will meet at 2 p.m. On its calendar is a measure to require a parent to report a child missing after 24 hours -- it is named after Caylee Anthony. Gov. Pat McCrory is attending two feel-good events Tuesday in Charlotte, first a YMCA prayer breakfast and then a Wells Fargo "Reading Above Par" event.

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TODAY AT THE STATEHOUSE: In a metaphor for this legislative session, the Senate is moving fast to raise the speed limit to 75 mph on some highways. The full Senate is scheduled to hear the bill Thursday, a day after it passed a committee and a week after it was filed, AP reports. The Carolina Panthers incentives bill also won approval in committee Wednesday and heads to the floor. Senate convenes at 10 a.m. The House is expecting a longer-than-normal day with a busy calendar, including a measure to limit the N.C. Lottery's ability to advertise and sell games. It starts at 1 p.m. Earlier in the day, House committees will consider a wind energy bill and IT changes requested by the McCrory adminsitration.

Gov. Pat McCrory will attend the UNC system Board of Governors meeting in Pembroke -- where he will surely face questions about the budget cuts he proposed -- before making an economic development announcement in the area.

HOW WILL GOP REACT? As AP reports, an American-Islamic group wants national Republican leaders to repudiate comments by a North Carolina legislator who compared Muslim prayer to terrorism. The Council on American-Islamic Relations said Wednesday that bigoted comments must be rejected if the GOP wants to reach minorities. State Rep. Michele Presnell of Yancey County did not respond to messages seeking comment.

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UPDATED: WHAT THE BUDGET SAYS ABOUT McCRORY: Columnist Rob Christensen -- "It suggested that McCrory is a pragmatic, moderate conservative – not a tea party Republican. The budget colored him an incrementalist with a modest vision of what government can or should accomplish. A governor’s first budget is particularly important because the governor is at the height of his or her power to push an agenda through the legislature. McCrory will never has as much leverage as he has today. So what did he do with his leverage?

"McCrory’s budget offered no sweeping vision of what he wants his governorship to be about. ... This may be sound management, but it is not the stuff of which legacies are made."

REPUBLICANS STACK THE DECK: The UNC Board of Governors elections in the House on Wednesday opened a chasm between Republicans and Democrats. The GOP elected mostly its own kin to the board, sweeping out all incumbents. Democrats voiceferously objected. But House GOP leader Edgar Starnes' response crystalized the debate: "I would just remind you of one thing. The Republicans won the election. We are in control. We intend to elect Republicans and appoint Republicans and we make no apology for it."

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HAGAN HIRES FORMER REID AIDE AS CAMPAIGN MANAGER: The 2014 U.S. Senate race is taking shape with Democratic incumbent Kay Hagan hiring Preston Elliott as her campaign manager. Elliott most recently served in the same role to help U.S. Sen. Jon Tester win re-election in Montana, one of the closely watched races of the 2012 campaign cycle. In 2010, Elliott worked as coordinated campaign director for U.S. Senate Majority Leader Harry Reid in his re-election effort, another high profile race. The big hire signals that Hagan expects a big fight in 2014. "He has a proven track record of success, and with his help and the help of North Carolinians of all walks of life, I expect to cross the finish line with a victory in November 2014," Hagan said in a statement.

WHO WILL HAGAN FACE?: A new Public Policy Polling survey -- set for release later Tuesday and obtained exclusively by Dome -- shows its a wide open race among Republican primary voters. Republican Lt. Gov. Dan Forest leads the field with 18 percent, according ot the Democratic polling firm. PPP added Forest's name to the potential field for the first time this month and he still managed to outpace Congresswoman Virginia Foxx (13 percent) and Labor Commissioner Cherie Berry (12 percent). The only announced candidate, tea partier Greg Brannon, gets 4 percent and at least a quarter of voters weren't decided on any of the nine names PPP tested. (More from the poll below.)

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MEMO STIRS THE N.C. POLITICAL POT: The political strategy memo from a cadre of groups aligned with Democratic causes is getting a good bit of attention for its tactics. One overlooked in all the coverage: a staff of video trackers to follow the every move of the "targets" (Pat McCrory, Thom Tillis, Phil Berger) and hiring private investigators.

McCRORY VISITING THE WHITE HOUSE: Pat McCrory is visiting Washington Friday through Monday for a series of meetings with the National Governors Association and Republican Governors Association. On Sunday, along with all governors, he will dine at the White House with President Barack Obama and First Lady Michelle Obama, followed by a meeting at the White House the next morning with the president.

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LAWMAKERS THROW McCRORY A BONE: The first bill to Gov. Pat McCrory's desk is likely to be a measure to cut unemployment benefits for the jobless. The Republican supports the bill but don't be surprised if it's not the first one he signs. The House worked late Wednesday to pass another bill designed to create two paths for high school graduates: technical schools or college. McCrory campaigned on this issue and Democrats expect to him to make it the first bill he signs. "The word on the street is that the governor wants to have a press conference on this," Democratic state Rep. Paul Luebke of Durham said on the House floor in criticizing the speed at which it progressed. The bill was heard in committee and given initial approval in the House in the same day.

TODAY AT THE STATEHOUSE: State Auditor Beth Wood appears before lawmakers this morning to talk about a recent audit showing troubles in the Medicaid system -- a documents Republicans are using as justification to block a Medicaid expansion under the federal health care law. A Senate committee will consider a measure to block public access to records about concealed weapons holders. On the House floor, House Speaker Thom Tillis is limiting debate on a controversial measure to block Medicaid expansion to 30 minutes. Lawmakers want to leave early today, in part, because it's Valentine's Day. McCrory is hosting more lawmakers for breakfast and lists no other public events.

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MORNING MEMO EXCLUSIVE: McCrory approval rating constant but disapproval spikes A new poll scheduled for release Wednesday shows Gov. Pat McCrory's negatives jumped 14 points higher than when he took office in January, with one third of voters disapproving of his effort so far. At the same time, the survey from the Democratic firm Public Policy Polling shows his approval rating essentially level at 47 percent, after starting his term at 45 percent, within the margin of error. The movement suggests North Carolina voters with no distinct opinion of McCrory a month ago now shift disproportionately against him, a byproduct of governing and the Republican's early stumbles in office.

DEMOCRATS TURN, HIGHER ED COMMENTS VIEWED NEGATIVELY:McCrory started in a honeymoon period with Democrats with only 26 percent disapproving and 48 percent not sure. Now, half of the state's Democrats disapprove. His margin of support among unaffiliated votes also slipped a bit to 48 percent approving and 31 percent disapproving in Feburary. About one-third of all voters polled disapproved of the governor's controversial comments about higher education with 26 percent approving and 42 percent unsure. The gaffe alone didn't likely move the numbers too much, the poll suggests. McCrory's pay raises to his cabinet secretaries are much less popular with 82 percent disapproving.

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TODAY IN POLITICS: The role of manufacturing in the state and how to revive the state's old economy takes center stage Monday and Tuesday at the Emerging Issues forum in Raleigh. The conference is hosted by former Gov. Jim Hunt. U.S. Sens. Kay Hagan and Richard Burr will brief the audience Monday morning. And Gov. Pat McCrory will attend a lunch and award ceremony Tuesday. Other top N.C. officials will take part throughout the event.

In the legislature, the House and Senate convene at 6 p.m. for skeleton sessions. The real action starts Tuesday when budget committees begin to meet in public. A House committee will consider the controversial Medicaid bill Tuesday, as the full Senate considers a measure to curtail unemployment benefits. McCrory has no public events Monday, but he speaks to N.C. Department of Natural Resources employees Monday morning.

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GUN AGENDA NOT ON N.C. GOP LAWMAKERS' AGENDA: President Barack Obama may have pledged one of the most aggressive gun-control plans in decades last week, but don’t expect North Carolina to follow suit anytime soon.

Some state lawmakers said they planned to take a more cautious approach to gun-control legislation than Obama – if they make any changes at all. Jordan Shaw, spokesman for N.C. House Speaker Thom Tillis, R-Mecklenburg, said “at this point, it’s probably unlikely that you’ll see any substantive changes in gun laws in the state.”

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