As a result of 2013 tax reform changes, 70% of North Carolina taxpayers now pay less or nothing in state personal income taxes.
From the Wall Street Journal
June 30, 2015
Regarding the June 18 letter from Alexandra Sirota of the Budget & Tax Center: As a result of 2013 tax reform changes, 70% of North Carolina taxpayers now pay less or nothing in state personal income taxes. This includes a majority in every income category, with the largest number being those making less than $50,000 a year.
Economic data from the North Carolina Department of Commerce show that North Carolina’s unemployment rate is down to 5.7% this May, compared with 8.1% in July 2013, when our historic tax reform was signed into law. Since that time, more than 188,000 new jobs have been created in the state. Every category of private-sector employment has experienced gains since then, spread across 97 of North Carolina’s 100 counties.
Analysis by a nonpartisan economist said that “the surplus this fiscal year is predominantly the result of strong growth in business income.” Claims to the contrary are just not based in fact.
We shouldn’t be surprised by these positive results. Other states consistently leveraged lower tax rates to their advantage when in competition with North Carolina for jobs. Our 2013 tax-reform efforts have finally made our state’s tax climate more competitive, resulting in job and economic growth.
What our state can’t afford is to follow the Budget & Tax Center back to the failed policies of the past—more government, more spending and more taxation.
President Pro Tempore
North Carolina Senate