- Associated Press - Tuesday, August 19, 2014

RALEIGH, N.C. (AP) — A cadre of Republicans in the North Carolina House broke ranks with their leadership to vote down a sweeping economic incentives and tax bill they said violated core conservative principles.

More than two dozen GOP members joined Tuesday with Democrats to defeat the bill 47-54, despite backing for the measure from Gov. Pat McCrory, Speaker Thom Tillis and Senate leader Phil Berger. The multi-part bill included county sales taxes, tax benefits for a Haywood County paper mill, expanded tax breaks for new businesses and a proposed $20 million fund to lure manufacturers with upfront cash.

The hour-long floor debate over the bill laid bare deep divisions within the House GOP caucus, with several Republicans deriding the bill and the tortured process by which it had been negotiated behind closed doors.

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