The national Tax Foundation is crowing about the recent legislation passed by the NC Senate that included more tax reform elements that if passed could pushed NC to 5th in the country on its Business Tax Climate rating.
The Senate passed House Bill 334 on June 10 and negotiators from the two bodies are now working out details of the overall budget package. The tax legislation would phase out the corporate income tax, reduce the individual income tax rate, increase the standard deduction and child deduction and simply the franchise tax base.
The Tax Foundation stated on July 23 that if the package stays intact, that if enacted “North Carolina’s already competitive ranking on the State Business Climate Index—a measure of states’ tax structure—would improve from 10th to 5th overall, making it the best-ranked among states that levy an individual income tax.
We remember when North Carolina’s economy limped along under liberal leadership – a time when the state unfortunately had the highest corporate tax rate in the Southeast, an impediment to business recruitment and new jobs. NC was ranked 39th on the Tax Foundation’s Business Tax Climate index at that time with little hope of change.
Then the Reform Majority came to power and the tax reform that has been implemented in the last few years has lifted our state’s economy to astounding levels.
To think we have gone so far from being near the bottom of business-friendly, job-creating states to now being one mentioned near the top can only fuel more economic growth. Going from 10th to 5th in the country in this rating would be a testament to the determination and wisdom of our leadership who understand the role of government and have opened the doors to businesses who want to come to North Carolina, flourish with productivity and create jobs for the men and women of our great state.
Let’s hope the Reform Majority leadership keeps the tax reform elements intact in the final budget and we can indeed celebrate a great victory for the people of North Carolina.