ATR: NC's 25% Reduction in the State Income Tax is the Largest in the Nation This Year
Americans for Tax Reform
North Carolina Gov. Pat McCrory Signs Historic Tax Reform into Law at 1 PM Today
NC’s 25% reduction in the state income tax is the largest in the nation this year
While the chattering classes discuss whether tax reform can happen in Washington, legislators in the Tar Heel State are showing lawmakers on Capitol Hill how it’s done. This afternoon, North Carolina Gov. Pat McCrory (R) will sign into law a historic overhaul of the North Carolina tax code. The final deal moves the state from a tiered personal income tax with a top rate of 7.75 percent, the highest in the South, to a flat 5.75 percent over two years. The plan also reduces the corporate tax from 6.9 percent to 5 percent over two years. If certain revenue targets are met, the corporate rate will fall to as low as three percent by 2017.
The final deal, which the North Carolina legislature passed last week, is the result of more than a year of planning and months of negotiations. North Carolina currently has one of the worst business tax climates in the nation; after Gov. McCrory signs this tax overhaul into law today, the state will have one of the best. Read more…