Since 2013, the Republican-led legislature has implemented a series of pro-growth tax reforms that have lowered everyone’s income tax rates, widened the sales tax base, tripled the standard deduction, and restructured the tax code by eliminating old-fashioned tax brackets and replacing them with a simple flat tax. In North Carolina, the result has been record budget surpluses, higher personal incomes, and business growth and job creation that’s leading the nation.
Tax reform was part of a larger conservative agenda that Republicans campaigned on in 2010, propelling them into the majority for the first time since 1870 and then capturing the governor’s mansion two years later.
These changes to the state’s tax regime are based on the conservative principles that our tax code should be simple, fair, built for growth and should work to make the North Carolina the best place in the world to hire and invest. This philosophy runs counter to the more entrenched progressive view that raising taxes is the best way to reap revenues that fund redistributive government programs.
Now, at the end of 2016, the results are in. A comprehensive new analysis by High Point University of the recent tax changes concludes that the 2013 tax reforms, unemployment insurance reform, and expiration of one-cent “temporary” sales tax in 2011, all had significant positive impact on North Carolina’s economy.
Brian Balfour of the Civitas Institute lays it all out in an informative post from yesterday:
Research prepared by Brent Lane, Director of the UNC Center for Competitive Economies at UNC-Chapel Hill, and presented to a legislative committee, shows that NC’s economy has outperformed national averages in several measures (see form below).
- Beginning in 2014, North Carolina’s per capita income growth rate has exceeded the U.S. average for eleven consecutive quarters, the best such streak in the Tar Heel State since 1996.
- Furthermore, North Carolina’s median household income recorded the highest rate of growth in the country over the previous three years – more than doubling the national average. In 2012, NC’s median household income ranked 46th in the country, and in three short years has climbed to 37th. With the continuation of positive economic news for our state, that figure is likely to rise further in 2016.
- Third, North Carolina’s overall economy – as measured by state GDP – grew faster than the national economy in each of the last three years.
- These strong figures are too broad-based to dismiss. Also consider that North Carolina has created a whopping 441,600 new jobs since January of 2011, a growth rate exceeding 11 percent. The state’s unemployment rate has dropped dramatically from 10.4 percent in January 2011 to 4.6 percent, now below the national average. These facts debunk the article’s false claim that a “persistent lack of jobs is driving high unemployment.”
- And the state’s poverty rate has dropped noticeably, falling from 18.6 percent in 2013 to 15.3 percent in 2015, meaning the state’s growth has lifted thousands of North Carolinians out of poverty.
For more information on Tax Reform, please read the following articles on this website:
- NC Makes Dramatic Gain
- Lowest Corporate Tax Rate in the US
- NC Economy Outperforming Nation
- Revenue Surplus Revised Upward
- State Tax Burden Has Declined
- The Real Truth on Tax Hikes
- Tax Cuts Save Taxpayers Billions
- Speaker Moore Tells It Like It Is
- NC is a Leader in Tax Reform
- Tax Collections Beating Forecasts
- So this is why we put Conservatives In Charge of Managing our Tax Dollars
- The Results are Indisputable
- NC Economy Gets National Nod
- Tax-Hike Claim Is Absurd
- Throwback Thursday: Sales Taxes
- There’s a Tax For That!
- Tax Cuts for All
- Reforming the Tax Code