LEGISLATIVE NEWSLETTER

June 21, 2013

LEGISLATURE 309 LEGISLATIVE OFFICE BLDG. 300 N. SALISBURY STREET RALEIGH, NC 27603 (919)733-5850 neal.hunt@ncleg.net 15TH SENATE DISTRICT 2600 FAIRVIEW ROAD RALEIGH, NC 27608 (919)781-3464 info@nealhunt.com

The House and Senate have passed their own versions of the state budget and their own tax reform packages. The Senate conferees to the budget conference will be negotiating with House leaders to determine the best and most prudent way to spend the states resources. I anticipate that in the end we will have a balanced, conservative, and sensible budget. TAX REFORM COMPROMISE At the same time we are polishing up the state budget, the General Assembly has another immediate objective: tax reform. The Senate has made a bold tax reform proposal that will dramatically improve North Carolinas economic environment. Our state currently has the highest tax rates in the Southeast and one of the worst business climates and unemployment rates in the country. High taxes remain North Carolinas greatest roadblock to economic recovery and prosperity. The Senates new tax reform proposal (HB 998) will simplify the states 1930s Depression-era tax code, provide substantial tax relief to working families, and create a more competitive environment for job creation. More than $1 billion in taxes will be cut in the first three years alone. In addition, it eliminates the food tax and does not tax prescriptions or services. This bill will: Reduce the state personal income tax rate from the current maximum of 7.75 percent to 5.4 percent in 2014 and 5.25 percent in 2015; Phase out, then eliminate the corporate income tax by 2017; Phase out, then eliminate the business franchise tax by 2018; Phase out, then eliminate the food tax by 2016; and Eliminate North Carolinas death tax During this past election cycle, we pledged to enact policies that will attract jobs and get our economy moving again; leaving our state with fewer government dependents and more private jobs. The simple fact is that you cant have employees without employers. I highly believe that the Senate tax reform

compromise will attract employers and thus, employees. This plan would provide much-needed relief to North Carolina families of all incomes and propel our state from the bottom of national tax rankings to the sixth best business tax climate in America! ESSE QUAM VIDERI No words can describe the current General Assembly better than our own state motto, Esse Quam Videri, which is Latin for to be rather than to seem. The press has extensively covered the many protests weve had at the Legislative Building. Youve probably seen or read the protestors chanting about the Republican war on the poor as you turn on the evening news or open a newspaper. Here are the facts: The poorest in our state receive free medical care, free housing from Section 8, free food stamps, free child care, and almost $1 billion in other state grants. When combining the funds provided by the federal and state government to North Carolinas low income earners, more than $15 billion per year is spent on projects dedicated to assisting the poor, yet protestors are demanding us (not asking us) to do more? The government didnt invent that $15 billion; the government received that $15 billion from hardworking Americans. What the protestors fail to realize is there will ultimately come a point when individuals have no incentive to work; thinking that no matter how hard you work or dont work, the government will always bail you out. Esse Quam Videri to be rather than to seem. To the protestors, we seem to be waging a war on the poor. To the protestors, we seem to be rewarding the richest North Carolinians at the expense of the working class. To the protestors, we seem to be out-of-touch with the needs of the average North Carolinian. Rather, we are passing a budget that prioritizes state spending on programs benefitting the lowest income earners of our state more than any other budget in state history. We are reforming our states outdated tax code so that all individuals at all income levels can keep more of their hard-earned money while closing loopholes created to benefit special interest groups. And most importantly, we are striving to make sure that all of our citizens have the opportunity and skills for economic prosperity without a growing dependency on government largess. As always, it is a pleasure to serve you in the North Carolina Senate. If you have any questions or concerns, please dont hesitate to contact me. Sincerely,

Neal Hunt Connect with Senator Neal Hunt

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