by Anna Manning
Carolina Journal’s Lindsay Marchello writes that North Carolina was ranked seventh-best among the states for it’s economic outlook in the 2018 edition of the American Legislative Exchange Council’s Rich States, Poor States.
From her article –
ALEC, a nonpartisan membership organization of state legislators, has ranked states on economic outlook and performance for 11 years. Due to what ALEC calls a record of substantive pro-growth tax cuts, North Carolina made the top 10 list — along with Utah, Idaho, and Indiana. New York, Vermont, Illinois, and California landed at the bottom.
“The shakeup in rankings is exciting and a testament to how states are always competing to offer the most pro-growth tax climate,” Rep. Jason Saine, R-Lincoln, and the national chair of ALEC, said in a press release. “When states compete on the merits of good public policy, ultimately the taxpayer ends up being the real winner.”
North Carolina earned its lowest score — 26th — on economic outlook in 2011, and its highest score in 2016 — second. The Tar Heel State fell from third in 2017 to seventh in 2018, as other states made more substantive reforms this year.
Legislators did pass tax cuts this year in Senate Bill 257, the state budget bill. Cuts include reducing the corporate income tax from 3 percent to 2.5 percent, lowering the individual income tax from 5.5 percent to 5.25 percent, removing the mill machinery tax, and reducing the franchise tax on small businesses. But, these cuts do not completely take effect until next year.
Other variables contributing to the state’s economic outlook ranking include its status as a right-to-work state and it having no inheritance or estate tax.
“We are proud of what we have done in North Carolina and strive to stay competitive for both businesses and hard-working taxpayers,” Saine said.