Budget grinds on
Chris Fitzsimon at NC Policy Watch is keeping a close watch on the budget negotiations, which is easier said than done.
Right now the focus is on taxes. On this, there’s quite a gulf between Commons and Lords.
House and Senate leaders agreed weeks ago to allocate $50 million for the tax changes and that’s where the agreement on taxes ended. The House budget includes an increase in the State Earned Income Tax Credit to help the working poor, a property tax break for military veterans, and the renewal of several other tax credits, most notably the break for small businesses that provide health care coverage for their employees.
The Senate did not include any tax changes in its budget, preferring instead to pass tax cuts and credits in separate legislation. The Senate first voted to repeal the state’s gift tax, a move that will benefit the wealthiest taxpayers and reduce state revenues by almost $20 million.
