North Carolina is one of only 16 states that imposes a tax on a company’s growth with a direct penalty on getting bigger and hiring more employees – the franchise tax.
The franchise tax is based on the amount of money a business invests in North Carolina. And a business pays the franchise tax whether it makes any profit or not. It’s a tax just for being here. So why be here and why hire anyone here?
For years, NC governors have tried to recruit more biotech. But a franchise tax is a get-out-of-town sign, because a biotech startup won’t turn a profit for years and so a franchise tax steals money from research.
Eight of the 16 states with franchise taxes at least put a cap on it.
But Gov. Roy Cooper vetoed the reform majority’s bill to cut and cap the franchise tax.
Roy Cooper’s franchise tax is a lot like Elizabeth Warren’s wealth tax. It’s a tax on accumulating capital. An unlimited, uncapped tax. And investing more in a business creates more jobs. Cooper’s franchise tax is a tax on jobs. Even Andrew Cuomo knows this, because even Andrew Cuomo has gotten rid of New York’s (!!) franchise tax.
That’s right. North Carolina’s anti-reformers are to the left of New York on taxes. Right over there with Elizabeth Warren.