Gregg Thompson, state director of the National Federation of Independent Business, released the following statement in response to the strong showing by North Carolina in the 8th edition of the American Legislative Exchange Council’s “Rich States, Poor States” report, released today:
“This report shows that North Carolina in general, and Governor McCrory, in particular, understand what it takes to create an environment where small businesses can expand and create jobs. They understand that the best way to help small, family businesses is by reducing taxes, enacting sensible regulations and then stepping out of their way.”
North Carolina is No. 4 in the ALEC-Laffer State Economic Outlook Rankings for 2015. That’s up from No. 6 in last year’s ranking and No. 22 in the 2013 report. [Download the full report here: http://www.alec.org/publication/rich-states-poor-states/]
In 2013, the governor signed historic tax-reform legislation that fundamentally restructured the state’s tax code. Reforms including restructuring the individual income tax, which had a top rate of 7.75 percent, first to a single 5.8 percent rate and finally, in 2015, to a single rate of 5.75 percent. “That’s important to our members, because many small-business owners pay taxes at the individual rate,” Thompson said.
The following year, Governor McCrory signed a bill repealing local privilege taxes beginning in 2015. At the time, over 300 cities around the state required businesses to pay this onerous tax for the “privilege” of doing business there. The change saves is expected to save small businesses an estimated $62 million a year, Thompson said.
“There were members of the legislature who opposed these changes, but this report confirms what small businesses already knew: That the governor and legislative leaders are leading us in the right direction,” Thompson said.
NFIB/North Carolina is the state’s leading small-business association with over 7,000 dues-paying members representing a cross section of the state’s economy. Learn more at www.NFIB.com/NC or follow @NFIB_NC on Twitter.