Tax Cuts Will Boost State’s Business Rankings | Eastern North Carolina Now | Amid the uncertainty of state budget negotiations, one fact still holds: North Carolina's corporate tax rates will continue to drop, and those cuts will improve the state's standing in an index from the Tax Foundation in Washington, D.C., ranking state business climates.

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    Publisher's note: The author of this post is Kari Travis, who is an associate editor for the Carolina Journal, John Hood Publisher.

N.C. set to reach top 15 in Tax Foundation's Business Climate Tax Index


    RALEIGH     Amid the uncertainty of state budget negotiations, one fact still holds: North Carolina's corporate tax rates will continue to drop, and those cuts will improve the state's standing in an index from the Tax Foundation in Washington, D.C., ranking state business climates.

    The General Assembly passed a major tax reform in 2013 including a trigger provision to cut corporate tax rates further if tax collections hit a growth target of $20.2 billion by the end of the current fiscal year. Revenues forecast by the state budget office are expected to surpass that easily, reaching $21.4 billion.

    The 2013 tax reform plan cut the corporate rate from 6.9 percent to 6 percent on Jan. 1, 2014, then to 5 percent on Jan. 1, 2015. By hitting the revenue target, further cuts will kick in, with the rate automatically dropping to 4 percent Jan. 1, 2016, and 3 percent Jan. 1, 2017.

    The first round of cuts helped the Tar Heel State jump from 44th place to 16th place on the Tax Foundation's Business Climate Tax Index. And thanks to the next rate cuts, North Carolina is poised to move even closer to the top of the list.



    With a 3 percent corporate tax rate, North Carolina will jump from 25th place to 11th place nationally, bringing the state's Business Climate Tax rank to 14th overall, said Scott Drenkard, economist and manager of state projects at the Tax Foundation.

    By leaping 28 places on the index in 2013, North Carolina enjoyed the largest jump in rankings in the history of the index, according to the Tax Foundation. By 2017, it will have moved a full 30 spots up the list.

    Additional tax relief will come to North Carolina from reduced unemployment insurance tax rates, thanks to the early repayment of more than $2 billion in unemployment insurance debt to the federal government.

    The Tax Foundation cannot adjust its index calculations to model the impact of the UI repayment. But Gary Salamido, vice president of government affairs at the North Carolina Chamber, projects the state's business climate will benefit greatly from the additional relief.

    "Beginning in 2016, you're going to see $2.5 billion going back into the economy," Salamido said. "That's $2.5 billion that's suddenly freed from payments to the federal government."

    That extra money will go directly into the private economy, which should continue to foster business growth in North Carolina, Salamido said.
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Comment

( May 28th, 2015 @ 12:45 pm )
 
So---us working folks pay for highways and other public works while Corporations get a more free ride each year = BALONEY!!!

If NC is to keep from becoming a REGRESSIVE as other states, we need to tout our values of good working people / good education system / improving lack of prejudice and hate / keeping drugs and crime at bay and reducing.

This Bull Shit of giving corps a free ride is getting more smelly each year. You concept is "give workers jobs and they will pay." My concept is let all, rich and poor, corporate and individual share in the upward growth and good climate of NC!

Building a tax haven for the rich is the same as building a Third World cheap labor force and Offshore Banking for them in NC. Kill the Reaganomics mistaken dream of "TRICKLE DOWN" Conservatism --- and you once more build America and its good workers, in my view.



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