North Carolina’s Republican-led Roadmap for Economic Success
More than a decade of tax cuts and pro-growth economic policies has positioned North Carolina as a global leader in job creation. The state has attracted a variety of new business, strengthened its manufacturing capabilities, maintained a reliable talent pipeline, and built the best business environment and economy in the nation.
Conservative economic policies work and North Carolina is the prime example. Before Republicans secured majorities in 2010, decades of Democratic tax policies put North Carolina employers and employees at a disadvantage. The state had a personal income tax rate of 7.75% and a corporate income tax rate of 6.90% — both higher than the rates in Virginia, Georgia, and South Carolina, at that time.
Republicans moved North Carolina to a flat personal income tax rate in 2013 and have continued to make meaningful reductions. The current rate is the lowest in the Southeast and it’s scheduled to reach 3.99% in 2027. The Republican majority also increased the zero-tax bracket so fewer low-income individuals and families pay taxes, reduced the regressive franchise tax, and is on track to eliminate the corporate income tax rate by 2030. The 2021 state budget brings the total tax cut in fiscal year 2023 to over $5.5 billion.
Beyond tax policy, Republicans looked internally to consider how to improve the state’s economic competitiveness.
In 2014, the Economic Development Partnership of North Carolina was created, bringing in valuable private sector knowledge and expertise to help business recruitment efforts. Republican lawmakers went further in overhauling the state’s incentive program, bringing it up to par with other competing states.
The results? Residents and businesses are flocking to North Carolina. Toyota has committed 2,100 jobs for a battery manufacturing plant in central N.C., and VinFast will be building an electric vehicle manufacturing plant that’s expected to employ 7,500 people. North Carolina has had record budget surpluses, and a Wall Street Journal analysis found that of the 46 million people who moved to a different zip code in the year through February 2022, the states that gained the most were Florida, Texas, and North Carolina.
“North Carolina is a trailblazer for pro-growth economic policy. We’re leading the flat tax revolution, have the best economy in the nation, and are the №1 state for business,” Sen. Paul Newton (R-Cabarrus) said. “Tax cuts work when properly implemented, and Republicans have shown we can create an advantageous business climate and high quality of life all while reducing the tax burden on North Carolinians.”