NC House Panel Approves Ending 'death' Tax
By GARY D. ROBERTSON
RALEIGH, N.C. (AP) â¿¿ House Republicans pushed a repeal of North Carolina's estate tax through a key committee Wednesday, over the objections of Democrats who said the majority party is again favoring the well-off over the poor and unemployed.
The House Finance Committee voted mostly on party lines in favor of the measure, although a broader tax overhaul plan is expected later this year. The measure would eliminate what GOP legislators have sought to do away with for years. A change by Congress last month to rework the link between federal and state estate taxes gave GOP legislators the opportunity to get rid of the state's portion.
Republicans say what they call the "death tax" encourages the wealthy to move out of state and hurts family-owned farms. The tax for people who died this year applies on the value of an estate over $5.25 million, with a tax ranging from 0.8 percent to 16 percent. The exemption is $10.5 million for married couples."We've got people who have worked, have scraped and saved all their lives to build up a business or a farm," House Majority Leader Edgar Starnes, R-Caldwell, said before the 24-10 committee vote. "Why do we want to establish an economic policy that punishes people just because they're trying to save something?" Most Democrats on the panel voted against the measure, with some seeking to contrast the bill affecting the wealthiest individuals with other legislation backed by Republicans early in this year's session. GOP Gov. Pat McCrory signed a bill earlier this week designed to fix the unemployment insurance system through cutting maximum weekly benefits, although business taxes will be higher, too. The House gave its final approval later Wednesday to a separate tax measure that Democrats couldn't alter that keeps the state's Earned Income Tax Credit on track to expire next year.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV