This week, the nonpartisan Tax Foundation released its annual “Facts & Figures 2017: How Does Your State Compare?” report, which outlines each of the 50 states’ tax climates. The report compares every state’s overall tax climate, corporate and income taxes, state-local tax burdens and state revenue, among other tax measures. Prior to North Carolina’s overhaul of the state’s archaic tax code in 2013, our tax climate maintained one of the worst rankings nationally. However, the implementation of commonsense policy reforms to streamline our tax climate has catapulted North Carolina’s competitive tax standing.
In just a few short years, North Carolina has improved from the 44th to the 11th most competitive tax climate in the nation. From reducing the personal income tax rate, benefiting both families and small businesses taxed based on their owner’s income, to becoming home to the lowest corporate tax rate in the country of states that levy one (3%), North Carolina has continued to climb the competitive leaderboard. While adversaries of reform attempted to undermine efforts to boost North Carolina’s competitive standing, the proof of its success is in the numbers. Just last month, the Office of State Budget and Management and fiscal researchers at the General Assembly projected a budget surplus of about $552 million for our state.
The NC Chamber and our members have been among the most ardent advocates of these reforms, understanding that a balanced, business-friendly tax climate will directly impact North Carolina’s ability to foster economic growth and retain investment in the state. While much has been accomplished during recent years, there is still more to be done. For that reason, the NC Chamber advocacy team remains focused on pursuing the simplification of the franchise tax and a full repeal of the mill machinery sales tax, as outlined in your 2017 Jobs Agenda. As the 2017 legislative session wages on, we will continue to update you on our efforts to further advance North Carolina’s competitive tax climate.
Gary J. Salamido
Vice President, Government Affairs
North Carolina Chamber