Corporate Income Tax Revenue, Do We Need It? | Beaufort County Now | The Left insists government is better poised than you to spend more of your hard-earned money.

Coronavirus Disease 2019 (COVID-19)
    Publisher's Note: This post appears here courtesy of the John Locke Foundation. The author of this post is Paige Terryberry.

    The Left insists government is better poised than you to spend more of your hard-earned money. Arguing against tax cuts, North Carolina Justice Center claims the tax cuts in the state's new budget "will permanently reduce revenue that the state has available to pay for every area of the budget."

    In particular, some have argued that the government needs the money from the corporate income tax, one of the most detrimental taxes to economic growth, to "support the public schools, public health, and other public goods." Even without a massive surplus, significant pork spending, and unprecedented federal stimulus, this argument is invalid.

    Yes, the government uses our tax revenue to function and to fund many programs. But the argument that the corporate income tax revenue is needed for government functions is flawed.

    Separate from the fact that the corporate income tax penalizes workers, the revenue from this tax is tiny and volatile.

    See the below graphs. Even before the tumult brought by Covid, the state corporate income tax revenue is minuscule, making up less than 3.5% of total tax revenue in each of the four years prior to the Covid-lockdown riddled fiscal year of 2020-21.

    Moreover, it is not a reliable source of revenue but is the most volatile source of tax revenue.


    And without a corporate income tax, legislators could end the practice of doling out hundreds of millions in corporate welfare, which would help offset a portion of lost revenue.

    Additionally, the corporate income tax comes with heavy administrative costs to both businesses and the collecting agency. Overall compliance costs for businesses have increased.

    The General Assembly's laudable efforts this year to phase out this tax will relieve businesses of burdensome compliance, liberate workers, and have a negligible effect on the workings of government.
Go Back


Latest Op-Ed & Politics

revoke emergency use of monoclonal antibodies with no basis for doing so but politics
President Joe Biden faced backlash on Sunday over remarks that he made in response to the hostage situation that unfolded on Saturday at a synagogue in Colleyville, Texas.
Top Democratic strategist James Carville took a shot at his own party during an NBC News interview on Sunday, saying that they needed to quit whining about things that they did not get, and focus instead on fighting for the American people.
Democrat Rep. Maxine Waters (CA) attacked members of her own party over the weekend, suggesting that they were racist because they do not support far-left measures that the party is pushing.
Gov. Roy Cooper and N.C. Attorney General Josh Stein want the state Supreme Court to throw out new statewide election maps.


We get corruption when power is abused.
Russia has reportedly signaled that it may move nuclear missiles off the United States coastline if it does not get what it wants in Europe amid increasing conflict with Democrat President Joe Biden’s administration.
The death of a democratic republic is not a new possibility; it has happened before in the pantheon of World history, and it can happen again; but, who will be to blame?
Biden snapped at Fox News reporter Peter Doocy


When asked by Fox News host Maria Bartiromo if he was going to “investigate Anthony Fauci should you take the control in the majority of the House,” Jordan responded, “Yes. Yes, we definitely are.”


Back to Top