Another Year, Another Tax Cut
One of the delightful findings of the New Year is that North Carolina’s personal income tax rate has dropped once again thanks to the responsible wisdom of the North Carolina General Assembly’s Reform Majority leadership.
North Carolina’s personal income tax rate in 2022 was 4.99%. This year – in 2023 – the personal income tax rate drops to 4.75%. And each year hereafter, the personal income tax rate is scheduled to keep dropping until it reaches a final low of 3.99% in 2027.
Opponents of the Reform Majority like to argue that tax cuts drain state coffers. But that hasn’t happened: According to WRAL, “Despite years of tax cuts, North Carolina's state government continues to collect more annual revenue and has exceeded expectations for several years. Earlier this month, state analysts said revenues were running $1.2 billion, or about 10%, above target for the first five months of the current fiscal year.”
North Carolina’s legislative leadership has stayed the course on tax reform and financial stability for over a decade, and the results are paying off. North Carolina was named “State of the Year” by Business Facilities magazine – a business recruiting publication. Earlier this year, CNBC named North Carolina the best state for business for the first time.
What’s more, North Carolina ranks #1 in the Southeast for median household income growth over the past five years.
Taken together, North Carolina’s low personal and corporate income taxes, commitment to prudent budgets, and rock-solid Rainy Day reserve, show why North Carolina is among the most attractive states in the country for employers and families.
The Carolina Partnership for Reform wants to remind our readers that while there are plenty of issues we intend to explore and bring to light that need to be fixed in our state, like the failure of the UNC System to defend academic freedom, there are also victories we need to celebrate and magnify.
And lowering taxes and keeping our financial house in order, compared to the general chaos we see from the big-spending liberals in Washington, is a great gift our legislative leadership has provided our citizens as we begin 2023.
