RALEIGH- A tax overhaul that gradually repeals corporate taxes and lowers personal income taxes has passed its first test in the North Carolina Senate.

The Senate tentatively approved a plan Thursday that goes farther than a previous proposal to lower overall tax rates but forgoes a broad expansion of sales taxes to new services. The House already approved a plan that doesn’t lower rates as far and adds some new sales taxes for services.

Republicans argued it will put people back to work in a state with the fifth highest unemployment. Democrats argued it will cripple public services by giving billions in tax revenues to corporations and wealthier earners.

The bill is scheduled for final vote Tuesday. The House and Senate will likely have to reach a compromise over their differences.