Under a newly passed House bill, North Carolinians will see a price hike in movie tickets, live performances and museum admission. The “Tax Simplification and Reduction Act” cuts personal and corporate taxes and imposes a uniform tax rate, as well as a 4.75% privilege tax on many leisure pursuits--including non-profit events. And local representatives say they were given inadequate time to consider the bill before voting on it.
State Representative Susi Hamilton, a Democrat from New Hanover County, voted against the bill, which she says places a burden on working people and non-profits. Hamilton also says that the bill’s elimination of earned income tax credits will raise taxes on close to a million North Carolinians, and that repeal of the estate tax only benefits 123 wealthy families in the state. However, Hamilton reports that representatives were given less than twelve hours to digest the final version of the bill.
"It was posted online the night before we voted on it, and we voted on it in committee the next day. And committee meetings are at 8:30 in the morning. We were not given ample time to review and understand the entire bill."
Hamilton says it is unlikely that there will be a repeal of the tax law, but that there may be some tweaks made due to unintended consequences. House Bill 998 takes effect January first.
To hear more on the tax reform package from Republican Representative Ted Davis, click here.