NCGOP's Historic Tax Reform Improves NC's Tax Climate | Eastern North Carolina Now

    Raleigh, N.C.     In 2013, Governor Pat McCrory and the General Assembly instituted historic tax reform by reducing the personal income tax for all North Carolinians, reducing the corporate tax rate, and eliminating the death tax. NCGOP leadership then lowered rates again in 2015. These reforms took North Carolina from being home to the worst business tax climate in the Southeast to the most improved tax climate in the country.

    "Governor McCrory and the General Assembly understood the detriment of North Carolina's archaic tax code and continue to institute the necessary reforms to invigorate the state's economy, bring in more business and put money back in the pockets of North Carolina families," said NCGOP Executive Director Dallas Woodhouse. "While Hillary Clinton's tax hike would eliminate hundreds of thousands of jobs and cripple economic output, North Carolina's Republican leadership is hard at work to grow jobs and give North Carolinians more control of their hard earned dollars."

    North Carolina's economic growth and improved business climate has not gone unnoticed. Not only does the state continue to top lists for job and income growth, but its tax reform is even envied by Democrat Governor and former first friend Terry McAuliffe. Hillary Clinton's long-time ally is modeling Virginia's tax plan after North Carolina's reforms, in order to make his state competitive.

    Woodhouse added, "Hillary Clinton's buddy, Governor Terry McAuliffe, is even looking to North Carolina's Republican led reforms to make his state stronger. Maybe she should take note too."


    North Carolina has the most improved tax climate in the country. After Governor McCrory's historic tax reform, North Carolina's business tax climate jumped from worst in the southeast to 15th best in the country, the single largest rank jump in the history of the Tax Foundation's rankings. (Scott Drenkard and Joseph Henchman, "2015 State Business Tax Climate Index," The Tax Foundation, 10/28/2014)

• When Governor McCrory took office, North Carolina had the worst business climate in the Southeast with the highest income and corporate income tax rates in the region. (The Tax Foundation)
• In 2013, Governor McCrory reformed North Carolina's antiquated 60+ year old tax code by reducing the personal income tax for everyone, reducing the corporate tax, and eliminating the death tax. Tax rates were lowered even further in 2015. (Barry Boardman, Fiscal Research Division, Nathan Knuffman, Office of State Budget and Management, "Memorandum: Revised General Fund Revenue Consensus Forecast," May 6, 2015)
• "Lawmakers and Gov. Pat McCrory struck a deal on tax reform Monday, ending a weeks-long impasse over how to rewrite a tax code that hasn't been significantly overhauled since the 1930s." (Mark Binker and Matthew Burns, "House, Senate, governor reach tax deal," WRAL, 7/15/2013)

    According to the Nonpartisan Cato Institute: "One of the most impressive tax reform packages in any state in years." (Op-Ed: Nicole Kaeding, "Why North Carolina Got The Highest Grade On Cato's Fiscal Report Card," forbes.com, 10/8/2014)

    North Carolina's Republican led tax reform is growing the economy and reducing the burden on hard-working North Carolina Families. These reforms are projected to reduce the tax burden on hard-working North Carolina families and businesses by $4.4 billion through 2018. (North Carolina General Assembly's Fiscal Research Division, Office of State Budget & Management)


• Over the past 12 months, North Carolina is a top 10 state for per capita personal income growth, growing between 12 percent and 15 percent faster than the national and regional averages. (Op-Ed: John Hood, "NC Sees Income Gains," Carolina Journal, 10/21/2015)
• In 2014, median household income grew faster than the national and regional averages. (Op-Ed: John Hood, "NC Sees Income Gains," Carolina Journal, 10/21/2015)
• "Just six states currently make the top-10 lists for both job growth and per-capita income growth. North Carolina is one of them - the only Southern state to do so." (Op-Ed: John Hood, "NC Sees Income Gains," Carolina Journal, 10/21/2015)
• "Using the most recent 12-month period available, North Carolina once again ranked 10th in the nation, measured either in total personal income growth (4.7 percent in our state) or growth in personal income per person (3.7 percent)" (Op-Ed: John Hood, "NC Sees Income Gains," Carolina Journal, 10/21/2015)
• "Over the most recent 12-month period, personal income in North Carolina has gone up by 4.7 percent. Again, that's one of the best growth rates in years." (Op-Ed: John Hood, "Six Trends to Shape 2016," Carolina Journal, 10/21/2015)

    According To Analysis By The Tax Foundation, Clinton's Tax Proposals Would Result In "311,000 Fewer Full-Time Equivalent Jobs." "The smaller economy results from somewhat higher marginal tax rates on capital and labor income." (Kyle Pomerleau and Michael Schuyler, "Details And Analysis Of Hillary Clinton's Tax Proposals," Tax Foundation, 1/26/16)

    According To Analysis By The Tax Foundation, Clinton's Tax Proposals Would "Reduce The Economy's Size By 1 Percent." "According to the Tax Foundation's Taxes and Growth Model, Hillary Clinton's tax plan would reduce the economy's size by 1 percent in the long run." (Kyle Pomerleau and Michael Schuyler, "Details And Analysis Of Hillary Clinton's Tax Proposals," Tax Foundation, 1/26/16)

    According To Analysis By The Tax Foundation, Clinton's Tax Proposals Would "Lead To 0.8 Percent Lower Wages. "The plan would lead to 0.8 percent lower wages, a 2.8 percent smaller capital stock, and 311,000 fewer full-time equivalent jobs. The smaller economy results from somewhat higher marginal tax rates on capital and labor income." (Kyle Pomerleau and Michael Schuyler, "Details And Analysis Of Hillary Clinton's Tax Proposals," Tax Foundation, 1/26/16)

    The Wall Street Journal's James Freeman: "For Everyone Dissatisfied With The Obama Economy, The Clinton Agenda Promises To Make It Just A Bit Worse." "And although the Clinton tax hikes are ostensibly targeting the rich, with proposed changes such as a new surtax on high incomes and a Buffett Rule that sets a minimum tax rate on high earners, the Tax Foundation projects a decline of at least 0.9% in after-tax incomes for all taxpayers due to slower growth. So for everyone dissatisfied with the Obama economy, the Clinton agenda promises to make it just a bit worse." (James Freeman, "Hillary's $191 Billion Tax Increase," The Wall Street Journal. 1/26/16)


• Fortune Magazine: Clinton's Tax Proposals Will "End Up Hammering Economic Output And Costing Jobs." "Hillary Clinton is going to have to answer questions about her tax plan in the coming day, as a new analysis claims Clinton's plan will involves hundreds of billions of taxes and end up hammering economic output and costing jobs." (Ben Geier, "Hillary Clinton's Plan Calls For $498 Billion In Taxes, Report Says," Fortune, 1/26/16)
• The Washington Examiner: Clinton's Tax Proposals Would "Crimp Economy Growth And Lower Incomes For All Workers." "Hillary Clinton's plans for reform taxes would raise nearly $500 billion in a decade on paper, according to new research, but would crimp economic growth and lower incomes for all workers, meaning that the actual revenues collected by government would be lower." (Joseph Lawler, "Analysis: Clinton's $498 Billion Tax Hike Would Lower Growth And Wages," The Washington Examiner, 1/26/16)

    Fortune Magazine: Clinton's Tax Proposals "Likely Won't Sit Well" With "Many Middle Class Voters." "This likely won't sit well with conservatives and many middle class voters. If Clinton wins the Democratic primary, expect her Republican opponent to talk about this study constantly - and for Clinton to offer rebuttals." (Ben Geier, "Hillary Clinton's Plan Calls For $498 Billion In Taxes, Report Says," Fortune, 1/26/16)


• Contact: NCGOP Communications
•     communications@ncgop.org