North Carolina has jumped to the top of the pack when it comes to economic outlook and future growth potential. In its eighth edition of the Rich States, Poor States report, ALEC ranked North Carolina 4th for Economic Outlook, compared to its 6th ranking last year and 22nd in 2013. This ranking is a forward-looking forecast based on the state’s performance in 15 policy variables. North Carolina’s current economic performance ranking was 10th in the nation based on state GDP, cumulative employment growth and domestic migration. Click here for North Carolina’s rankings.
As the 2013 tax overhaul continues to phase in, North Carolina’s corporate and personal income taxes went down this year to 5.75% and 5% respectively. The tax reform package has had broad, far-reaching effects that immediately improved the state’s competitiveness and put it on track for greater economic growth. However, we know that other states are not standing still which means North Carolina needs to continue improving its tax climate to continue the state’s positive momentum in job creation and economic growth.
To that end, the NC Chamber is focused on building upon the 2013 tax reform to ensure companies that already employ millions of North Carolinians can look to expand and grow, spurring further business investments and job creation. We currently support multiple initiatives (H117, S338, S526) in the General Assembly that take important steps to increase certainty and competitiveness in our tax code. Chief among these are the simplification and reduction of the franchise tax and moving to singles sales factor, which will apportion corporate business income on the sole basis of the portion of the corporation’s total sales that occur in the state.
We look forward to working with the House, Senate and Governor to find common ground and advance initiatives that continue to position North Carolina’s business climate competitively. We will keep you updated as these initiatives advance.
Gary J. Salamido
Vice President, Government Affairs
North Carolina Chamber