JLF Research Archive

Economic Growth & Development

Showing items 1 to 25 of 36

(4.28.14) An Occupancy Tax Increase? Haywood County already has a million dollars annually from existing tax

Officials from Haywood County have proposed an increase in the county’s occupancy tax by 50 percent, which would disadvantage Haywood compared to surrounding counties with lower rates. Taxation is justified only for necessary purposes of government. Tourism promotion is not such a function and can best be served by the private sector.


(4.15.14) Lower Taxes, Higher Growth: Scholarly Research Reveals Economic Benefits of Fiscal Restraint

Most studies find that lower levels of taxes and spending, less-intrusive regulation, and lower energy prices correlate with stronger economic performance. The implications of this research track well with recent public policies adopted in North Carolina. Judging from the available empirical evidence, North Carolina’s new policy mix is likely to result in stronger economic growth in the coming years.


(6.20.13) Three Truths of Tax Reform: Senate, House plans would spur growth, create jobs

The House and Senate tax bills now under discussion in the General Assembly would constitute fundamental tax reform, but will not prevent state government from funding core public services such as public schools and universities. They will, however, increase job creation and economic growth.


(1.28.13) Guild By Association: N.C.'s Aggressive Occupational Licensing Hurts Job Creation and Raises Consumer Costs

North Carolina features over 50 occupational licensing boards, more than most other states. In practice, it protects current members of a profession from competition, while increasing costs to consumers and would-be professionals blocked from the field. Economists studying occupational licensing generally find it restricts the supply of labor and drives up the price of labor and services. Without state licensure, private providers of reviews and certification, internet sites and consumer applications, social media, and competitors and market forces would ensure quality and safety. The government would still enforce safety and quality through the court system.


(9.12.12) Flex Growth: A smarter option for North Carolina communities

In recent years, an increasing number of local governments across the nation and across North Carolina have adopted “Smart Growth” policies. However, North Carolina should look to the future and adopt a flexible growth agenda — Flex Growth. Flex Growth is a market-based system of principles for government land use and development policy, especially at the state and local government levels, based upon the idea that people — and not government bureaucrats and planners — know what is best for themselves.


(8.27.12) The Amazon Tax That Was Not: North Carolina’s Attempt to Expand Sales Taxation Beyond Its Borders

North Carolina has an Amazon tax, which categorizes out-of-state firms as in-state, and thereby liable for sales tax, under certain conditions. However, the tax has not proved effective at increasing revenues, it does not level the playing field, and it may drive firms out of the state.


(7.18.12) Carolina Cronyism: Introduction, Overview, and Reforms

Cronyism is an umbrella term covering a host of government activities by which an industry or even a single firm or speculator is given favors and support that they could not attain in market competition. This report explains what opens government to cronyism, gives a brief rundown of recent examples of cronyism in North Carolina, and offers several possible reforms.


(7.18.12) N.C.'s Film Tax Incentives: Good Old-Fashioned Corporate Welfare

Once a popular off-Hollywood venue for filmmakers before state film tax incentives, North Carolina is now one of the leaders in a race to the bottom among other states and nations in giveaways to movie production companies. The incentives show that state leaders know that lower taxes and regulations attract industry. So why play favorites with industries? Why not just lower taxes and regulations altogether?


(5.02.12) Catch Shares: A Potential Tool to Undo a Tragedy of the Commons in NC Fisheries

Declining fish stocks are affecting N.C. fishermen and fishing communities despite the U.S. government spending $70 million a year to bail out failing federally managed fisheries under traditional management systems. Catch shares are a transformative approach to fisheries management that inject property rights into the fisheries to produce a sea change in incentives. Catch shares eliminate race to fish, encourage a more discriminating harvest, and reduce bycatch. Research finds strong links between catch shares and improved economic and biological performance of fisheries and that switching fisheries to catch share systems not only slows their decline but possibly stops (or even reverses) it.


(2.28.12) By the Numbers: What Government Costs in North Carolina Cities and Counties FY 2010

County and municipal governments provide many key services while taking in billions of dollars in revenue, but finding comparative data is hard. That's why this report provides information of how much local government costs in every city and county in North Carolina.


(2.16.12) Wake County Sustainability Task Force Report: An Alternate Opinion

This Regional Brief critiques the process used by the Wake County Sustainability Task Force and its final report. The author was a member of the task force.


(1.13.12) First, Stop the Bleeding: Getting North Carolina Out of Its Unemployment Insurance Crisis

North Carolina’s Unemployment Insurance (UI) administrators have vastly outspent revenues and generated a debt of $2.6 billion with the federal government—the third-highest in the nation, on a per-capita basis. This report proposes five ways for legislators to address this rapidly growing problem.


(11.08.11) The Corporate Income Tax: Repeal, Not Reform

North Carolina's corporate income tax should be repealed, not reformed. It violates all basic principles of sound economic policy and open government. It not only imposes a second and even a third layer taxation on many people’s incomes, but it is hidden, dishonest, and inconsistent with informed decision making in a free and democratic society.


(9.14.11) A Blank Check for Buncombe: County commissioners ask voters for a sales-tax increase

Buncombe County commissioners seek voter approval of a sales-tax hike, promising that the $7 million that would be raised would be given to AB Tech for a new building and renovations,. The funds would go into the county’s general fund, however and could be spent on any legal purpose.


(5.09.11) An Economic Analysis of State Tax Changes in North Carolina

The John Locke Foundation asked The Beacon Hill Institute at Suffolk University (BHI) to use its North Carolina State Tax Analysis Modeling Program (NC-STAMP®) to analyze three state tax proposals. The tax changes would provide a powerful stimulus to the North Carolina economy. Employment would increase by 14,922 in 2012, and when fully implemented in 2013 would create 17,016 by leaving more money in the hands of the state’s households and businesses. The combination of individual income tax and sales tax changes would increase real disposable income by $1.1 billion in 2012 and $1.6 billion in 2013. (Revised May 10, 2011)


(3.15.11) By the Numbers: What Government Costs in North Carolina Cities and Counties FY 2009

County and municipal governments provide many key services while taking in billions of dollars in revenue, but finding comparative data is hard. That's why this report provides information of how much local government costs in every city and county in North Carolina.


(11.12.10) The First 100 Days: Eleven Action Items for the 2011 Legislative Session

This report highlights eleven action items that North Carolina’s new General Assembly should seek to implement in the first 100 days of the 2011 legislative session. These items touch upon a cross section of public policy areas, including education, economic development, property rights, energy and the environment, health care, the budget, and transparency. We at the John Locke Foundation believe that these items represent straightforward actions that would greatly enhance the liberty and prosperity of North Carolina’s citizens.


(10.06.10) Third Time’s Not the Charm: Guilford County still needs better spending, not higher taxes

Guilford county commissioners are asking for an $11.6 million tax increase at a time of high unemployment. In 2008, they twice asked voters to pass a tax increase, but by large majorities, the voters turned them down. To illustrate the commissioner’s inability to manage spending and the debt, the county will exceed its debt guideline every year from 2012 to 2016.


(9.07.10) Lotteries and Economic Incentives: Governments need better tools to evaluate tax breaks

Business incentives are like lottery tickets, providing big rewards for governments if you don’t count the costs. Iredell County modeled the financial costs and benefits of an incentive offered in 2009 and showed a positive net present value for the incentives, but neglected to factor in the opportunity cost of forgoing the next best use for the funds and the likelihood the investment would have happened without an incentive.


(7.12.10) Reforming the Sales Tax: Keep in mind liberty, prosperity, and sound principles of taxation

Over the past year the focus of North Carolina’s Joint Legislative Committee on Tax Reform has been almost exclusively on whether to expand North Carolina’s sales tax to include services. Following sound principles of tax reform, however, the focus should be on whether the tax base is what economists call neutral, and whether the tax conforms with the principles of justice, rooted in a respect for liberty and freedom of choice. At a combined average state and local rate of 7.98 percent, North Carolina’s sales tax rate is virtually tied with Tennessee’s rate of 8 percent as the highest in the Southeast.


(3.15.10) A Planners' Glossary: Understanding Raleigh's New Development Code, the Diagnostics & Approach Report

This glossary defines and explains terms used in the consultant's report, "Diagnostic & Approach Report" (DAR), which contains recommendations for implementing Raleigh's newly approved 2030 Comprehensive Plan.


(5.07.09) Salisbury’s Fiber-Optic Cable System: Another corporate welfare project paid for by average taxpayers

The City of Salisbury recently decided to build a $30 million fiber-optic cable system that will offer Internet, phone, and television service to Salisbury residents and businesses. The city is paying for this system with 20-year bonds.If the system cannot attract enough subscribers, city officials have stated that they will use an increase in property taxes of 9.5 cents per $100 valuation to fund the project.


(1.06.09) Wilson’s Fiber-Optic Cable Boondoggle: City Invests $28 Million in a Technology That Could Be Obsolete Before It’s Paid For

The City of Wilson’s $28 million investment in a fiber-optic cable system for Internet, phone and television could be obsolete even before it is paid for, leaving city taxpayers and electric utility users to pay the balance on the 25-year bonds.


(9.04.08) The New Raleigh Convention Center: A taxpayer-funded money pit

Although many Raleigh and Wake County taxpayers do not realize it, city and county officials knew from the beginning that the new Raleigh Convention Center would require taxpayers to pay for large operational losses and even pay large subsidies to organizations to use the facility. Even before the doors open on September 5, the losses and subsidies have begun to mount.


(5.15.08) Sustainable Growth: Principles and Policies

This report on sustainable growth is the third in a series of annual research papers from the John Locke Foundation devoted to explaining the principles of free markets and applying them to current controversies in North Carolina.


Who Is John Locke

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