(Alexandria, VA) – On behalf of its 8,800 members in the Tar Heel State, National Taxpayers Union (NTU) praised the expected signing of the “Tax Simplification and Reduction Act” by Governor Pat McCrory; and lauded North Carolina leaders for passing the most sweeping tax reform package of 2013.
“North Carolina taxpayers who want to see their state thrive, not just survive, are truly relieved to see Raleigh take action on pro-growth tax reform,” said NTU State Affairs Manager Lee Schalk. “With lower personal and corporate income tax rates, North Carolina will quickly become a more attractive place for businesses and individuals, spurring economic growth at a time it is desperately needed.”
NTU has long argued that tax reform is desperately needed for the state, as North Carolina currently maintains the highest top marginal income tax rate, and features the worst business tax climate and second-highest unemployment rate in the Southeast region.
The “Tax Simplification and Reduction Act” addresses these problems by replacing the three-tiered personal income tax with a lower flat rate, reducing the corporate income tax, eliminating the death tax, and placing a cap on the state gas tax. While previous Senate legislation included even greater tax relief, this final package still gives North Carolinians $500 million of savings over the next two years – the most significant tax cut for any state this year.
Schalk concluded, “North Carolina accomplished what no other state could this year. With little else coming from Washington except higher government health care spending and more burdensome business regulations, this historic, home-grown tax cut arrived in the nick of time.”