by Mitch Kokai
Senior Political Analyst, John Locke Foundation
The final deal, which the legislature is set to pass and send to the governor later this week, is the result of more than a year of planning and months of negotiations. North Carolina currently has one of the worst business tax climates in the nation; after Gov. McCrory signs this tax overhaul into law, the state will have one of the best.
“North Carolina voters made a decision last November to elect a more taxpayer-friendly and economically-literate state government. Today that decision is paying dividends, with the announcement this afternoon that Gov. McCrory and leadership in the General Assembly have reached a final agreement on a plan that will provide significant and much-needed tax relief for individuals, families, and employers across North Carolina,” said Grover Norquist, president of Americans for Tax Reform. “The compromise plan presented by Gov. McCrory, Speaker Tillis, and Senate President Berger today represents a huge improvement over the current tax code. Thanks to hard work by members of the legislature and their staffs, North Carolina will no longer have the highest income taxes in the South after the legislature adjourns later this month.”
Americans for Tax Reform and other supporters of the plan contend that this tax overhaul will boost economic growth and make the state more attractive to employers and investors. Currently, North Carolina has the highest unemployment rate in the region.
“For decades in North Carolina, taxes only went in one direction: up,” continued Norquist. “Fortunately for North Carolina taxpayers, the state is under new management and, as this pro-growth tax plan demonstrates, open for business again. North Carolina lawmakers will head home from Raleigh this Summer having delivered on one of their top campaign promises. Members of Congress and national pundits continue to debate the prospects for tax reform in Washington, I commend North Carolina lawmakers for demonstrating what pro-growth tax reform looks like.