Why was NC ranked the best state for business? | Eastern North Carolina Now | CNBC ranked North Carolina as the #1 state for business and economy in 2022. North Carolina has consistently been a top 10 contender and last year was the runner-up, but what caused the state to take the top spot?

Coronavirus Disease 2019 (COVID-19)
    Publisher's Note: This post appears here courtesy of the Carolina Journal. The author of this post is Brayden Marsh.

    CNBC ranked North Carolina as the #1 state for business and economy in 2022. North Carolina has consistently been a top 10 contender and last year was the runner-up, but what caused the state to take the top spot?

    "When Republicans won control of the General Assembly over a decade ago, we put North Carolina on a direct path toward becoming the best state in the country for business," Senate Leader Phil Berger (R-Rockingham) said. "From reforming our tax policy to creating some of the best incentives in the nation, North Carolina is a magnet for business creation and expansion."

    The Republican General Assembly is seen as the reason for economic growth by business owners as well.

    "To me the main reason is that we've had a conservative general assembly since 2010," says Bob Luddy, CEO of CaptiveAire. "The PIT (personal income tax) was reduced from 7.75% to 4.99% and it's going to go down further in years to come. Corporate went from 6.9% to 2.5% and is heading to zero."

    "Treasurer Folwell paid off the unemployment insurance debt to the federal government. New York and California chose not to pay theirs off even though they had all the money to do it which means the federal government will raise the tax on businesses until it's paid off," continued Luddy, "Many good financial decisions, big improvements in educational opportunities, containment of regulation, so all the way around the general assembly over the last 12 years has done amazing things."

    CNBC attributes North Carolina's success to bipartisan incentive negotiations that make the state more attractive to incoming companies and manufacturers, but bipartisanship isn't a new concept in North Carolina.

    "CNBC oversells the 'political collaboration' angle," says Mitch Kokai, senior analyst for the John Locke Foundation, "It cites the willingness of Gov. Cooper and legislative leaders to reach agreements on targeted tax incentives for major economic development projects. But that type of cooperation always has existed across party lines in North Carolina."

    The $2 billion deal to open a VinFast electric vehicle factory is the highlight of the bipartisan efforts in CNBC's article. The article says that as Gov. Roy Cooper signed the deal that Speaker Tim Moore and Senator Phil Berger were "close at hand." This deal can create upwards of 7,500 to 13,000 when construction is completed on its 2000 acre plot in 2024, but some believe the government shouldn't choose what companies thrive.

    "That bipartisan support has disappointed free-market groups like the John Locke Foundation," says Kokai, "We believe these targeted giveaways represent bad public policy." Although targeted tax incentive deals can bring big manufacturers like Apple's $846 million incentive deal to bring a campus to the triangle area, free-market groups don't want the government selecting what companies get incentives.

    "Any special incentives are bad long term," says Luddy, "It was noted that the governor stated that they had a scientific way of determining the future. The idea that the governor's office could pick out the future industrial leaders is paramount to fraud. They're very unfair to taxpayers and to the businesses that operate in the state."

    "The CNBC story seems to suggest that North Carolina's continued strong performance will depend on future political collaboration. That's true only to the extent that the political actors unite around ideas that are good for all businesses, not just a select few," says Kokai, "The bottom line is that North Carolina has placed itself in position to contend for the honor of being the top state for business because of a decade of tax and regulatory reforms, along with worthwhile changes in transportation and education policy."

    Instead of focusing on the bipartisan efforts in the general assembly, analysts believe the economic success should be attributed to the economic reforms in North Carolina.

    "Personal income tax rates are dropping again, and the corporate rate is set on a path to disappear," says Kokai, "Those changes make much more difference than the fact that the governor and legislative leaders are willing to sing Kumbaya."
Go Back

HbAD0

Latest Regional Business

It has begun, and it will be a process, but know this NOW: Beaufort County Now (BCN), created by Symbiotic Networks (SNI), has evolved to a point that this online publication's most natural progression is to transition into Eastern NC NOW (ENC NOW).
With words not so complicated in clarity, but are proven beyond their capability to fathom in purpose; evidenced by their pejorative words of pure conjecture to corporately misunderstand the essential nature, the core machinations of those self-asserted issues important to their corporate identity.
National Economic Council Director Brian Deese said on Wednesday that the United States can address high inflation by passing more spending bills.
In response to the Covid shutdown recession, the Small Business Administration and Department of the Treasury rolled out the Paycheck Protection Program (PPP).
CNBC ranked North Carolina as the #1 state for business and economy in 2022. North Carolina has consistently been a top 10 contender and last year was the runner-up, but what caused the state to take the top spot?
As unemployment remained at low levels in June, the portion of American adults participating in the job market remains far below pre-recession levels, according to a Friday news release from the U.S. Bureau of Labor Statistics.

HbAD1

In the politcal age of Covid, Beaufort County may be taking some real advantage of "free money" rolling around making some communities richer while making our Republic far poorer ... in a relative sense.
I have a growing collection of images, the vast majority of which are in North Carolina, that I am now offering for sale in a limited edition format.
I have a growing collection of images, the vast majority of which are in North Carolina, that I am now offering for sale in a limited edition format.
My apologies to the many Beaufort County patrons who have had a lessened amount of content, save the Beaufort Observer section, who have faithfully continued in the BCN absence of industry in recent weeks. It could not be helped.
Extending over 2.57 acres (if purchased in one block), this Commercial Corner, the former John H. Small property, is now for sale, and may be sold as one tract, or sold in building footprints.
This bundle of five lots can be split to sold as a pair, or in a combination of three additional lots bringing the total to five, allowing a flexible purpose for many possibilities.

HbAD2

Within the plan of this project, I am offering these lots, and this tract that may be so unique that few, if any other proposed projects would even consider offering such, offering such; an experiment in community where the dreams of many may have individual success, bolstering the community.

HbAD3

 
Back to Top