NC Tax Overhaul Takes Effect In 2014

North Carolina state leaders say major tax changes taking effect in 2014 will simplify returns, create jobs and keep more money in people's wallets. Critics say the new rules will diminish funds for schools and widen the gap between haves and have-nots.

Gov. Pat McCrory and the Republican state leaders who pushed through the changes this past summer are touting individual and corporate income tax rates that will fall in the new year.

On the other hand, some valuable tax deductions will disappear or get capped. They include breaks granted to small businesses, for some mortgage interest payments and for college savings plans.