UPDATED: North Carolina lawmakers gave final approval to a major tax cut measure Wednesday, sending it to Gov. Pat McCrory.
The governor and Republican lawmakers announced the details of the tax bill just two days earlier and moved it quickly through the House and Senate. The House approved it by a 77-36 vote and the Senate consented with a 32-17 vote, mostly along party lines.
Under the bill, personal and corporate income taxes fall to 5.75 percent and 5 percent, respectively, in 2015.
The second day of debate tracked closely to the first, though new numbers continue to come to light showing that not everyone will benefit from the plan, as Republicans suggested.
House Bill 998 ends a $50,000 exemption on personal business income, a provision GOP lawmakers approved two years ago and Democrats decried for helping wealthy lawyers and doctors.
But the provision has proved popular among small business owners. And 60 percent of those who qualify for the tax break now would see an average tax increase of $1,150 if the exemption is removed, according to legislative fiscal research staff. Another quarter would get a tax break and about one in five people would break even.
The line is draw effectively at $253,000 in income for a married couple with two children -- those families who make that much or more would likely see a tax decrease, those who make less may see taxes go up.
Senate Democrats used the figures to press their argument that the bill benefits the wealthy at the expense of lower- and middle-class taxpayers. They also note that corporations will get a tax break but not small businesses.
Republicans refute the numbers with their own scenarios and argue that the bill will help boost the state’s economy.