McCrory sides with measured effort tax overhaul

Published 12:00 am Friday, May 31, 2013

RALEIGH (AP) — Gov. Pat McCrory sided Thursday with a measured approach to overhauling North Carolina’s tax system and turned away from a more dramatic proposal to greatly expand the number of transactions subject to the sales tax.

The Republican governor released a statement several hours after three separate proposals were discussed in a pair of legislative committees Thursday morning.

McCrory said the House Republican proposal and a bipartisan Senate proposal “are closest to my position.” He appeared to criticize a plan backed by Senate leader Phil Berger, R-Rockingham, and his lieutenants. That proposal would broaden the sales tax base to cover more than 100 additional services and products — requiring potentially hundreds of thousands of businesses to collect sales taxes when they don’t now.

“We all share the goals of reducing personal and corporate income taxes. But I cannot support a plan which turns too many North Carolinians into first-time tax collectors,” McCrory said in a news release.

He has said he wants a plan to lower corporate and individual income tax rates so North Carolina can compete with surrounding states.