North Carolina’s business tax climate ranking catapulted from the 44th worst in the nation to the 16th best, according to the Tax Foundation’s 11th annual State Business Tax Climate Index. North Carolina’s drastic improvement is the single largest rank jump in the history of the Index. This leap comes from the 2013 tax reform plan (H998) that reduced the personal income tax level for all North Carolina taxpayers and cuts corporate taxes so North Carolina companies can create jobs and make the state more attractive to new businesses. This marks real savings for North Carolina’s job creators, both small and large, and positions our state to be a leading job creator in the South.
According the Tax Foundation release, “The state improved its score in the corporate, individual, and sales tax components of the Index, and as the reform package continues to phase in, the state is projected to continue climbing the rankings.” As the Wall Street Journal points out, though, other states are not standing still which means North Carolina needs to continue improving its tax climate to continue the state’s positive momentum in job creation and economic growth.
Gary J. Salamido
Vice President, Government Affairs
North Carolina Chamber