by Dr. Roy Cordato
Senior Economist, Emeritas
The latest Small Business Policy Index published by the Small Business and Entrepreneurship Council has ranked North Carolina as 14th best in the nation for having a conducive policy environment for small business and for “entrepreneurial friendliness.” The index is based heavily on personal and business taxes. The higher these taxes the worse a state will perform. It is also examines other policies that impose costs on business such as regulations and health care mandates.
It should be noted that North Carolina has come a long way since Democrats were last in control of the General Assembly. In 2013 NC’s ranking in this index was an embarrassing 31. The tremendous improvement is most clearly due to the tax reforms and tax cuts that have been in implemented during the last 4 years.
But clearly the state can do better. As noted here, North Carolina has 56 health insurance mandates that harm small business and small business owners. the elimination of these mandates could help us edge closer to the top of this index. Furthermore, capital gains taxes are also an important component of this index. The legislature should follow through on current interest in reducing this tax or abolishing it altogether.