Publisher's note: This post, by Brian Balfour, was originally published in Civitas's online edition.
this weekend about a new report which ranked North Carolina as the best place to do business in the South, and 6th best nationally.
- Financial news website 247wallst.com says our state is the best for business in the South and No. 6 best in the nation. Mike Walden, an economist from NC State, is not surprised North Carolina is at the top of another list.
- "They often find North Carolina is a bargain," Walden said.
- Massachusetts topped the list overall while West Virginia came in last. In our state, numbers show we are outpacing a lot of the country.
- "The labor force grew by two percent, the national number is 1.4 percent," Walden said.
Walden also noted "we now have either the lowest or one of the lowest corporate income tax rates, and we used to have the highest."
Walden is definitely on to something. North Carolina has seen tremendous gains in terms of creating a more hospitable climate for job creators over the past decade.
Indeed, the contrast is striking.
In 2010 North Carolina:
- had a personal income tax code that topped out at 7.75% - highest in the southeast and 11th highest nationally
- had a 6.9% corporate income tax; highest in the southeast
- ranked a lowly 39th in the Tax Foundation's business tax climate index
Today, North Carolina:
- Has a flat personal income tax rate of 5.25 percent, good for lowest in the Southeast among states that levy one and 25th nationally. Moreover, the standard deduction has increased, exempting more low-income workers from having any state tax liability at all. "More than 1.5 million working families in North Carolina owe no income tax on their earnings now that the state's standard deduction has tripled," reported House Speaker Tim Moore's office in April 2019.
- has a 2.5% corporate income tax, lowest among states that levy one
- ranks 15th best in the Tax Foundation's business tax climate index