tax reform - Carolina Journal

Budget Provision Could Delay Corporate Rate Cut

RALEIGH — A new round of tax cuts in the $21.735 billion state budget for 2015-16 may prevent the state from lowering the corporate income tax rate to 3 percent in 2017 because tax collections are projected to be $74.7 million lower than a revenue target set two years ago. Even so, legislative leaders say they are confident that the state will collect enough revenues to trigger a second cut in the corporate income tax that would take effect Jan. 1, 2017.

Dan Way

Opinion

Get NC Tax Reform Right

Tax reform is a process that ought to lead to a destination — but there is as yet no consensus about that destination among Republican leaders in North Carolina.

John Hood

Opinion

Three Teams Debate Tax Reform

Although the Fair Tax and Flat Tax groups disagree on how best to levy state taxes — indirectly through business collectors or directly to households — they actually agree on the preferred tax base.

John Hood

News

Tax Cuts Will Boost State’s Business Rankings

RALEIGH — Amid the uncertainty of state budget negotiations, one fact still holds: North Carolina’s corporate tax rates will continue to drop, and those cuts will improve the state's standing in an index from the Tax Foundation in Washington, D.C., ranking state business climates. Once the rates triggered by strong revenue growth take effect, the Tar Heel State will rank 14th nationally, up from 44th in 2012.

Kari Travis

News

Unexpected Surplus Would Trigger Lower Tax Rates

RALEIGH — The tax reform law passed by the General Assembly in 2013 — lowering personal income tax rates, establishing a flat tax, and reducing corporate income tax rates — included a trigger provision that would cut lower corporate tax rates even more if tax collections exceed revenue projections. If tax collections continue to come in at or above the levels forecast today, the corporate income tax rate would drop from 5 percent to 4 percent on Jan. 1, 2016. If next year’s collections exceed projections, another trigger would kick in, dropping the rate by an additional percentage point on Jan. 1, 2017.

Barry Smith

Podcast

Thanks To Tax Reform, Tar Heels Keep More Of Their Money

Roy Cordato on next steps in tax reform; Ted Cruz on Obamacare issues; lawmakers on deal to lower electric bills in eastern NC; Richard Vedder on why markets address problems better than government; Katherine Restrepo on Medicaid lessons from other states

Richard Vedder, Dr. Roy Cordato

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News

Senate’s Tax Proposals Mostly Draw Kudos

RALEIGH — The bill would lower the franchise tax rate — imposed on all businesses in North Carolina — from $1.50 per $1,000 to $1.35 per $1,000. It would raise the minimum franchise tax from $35 to $200. For holding companies, the bill would double the maximum franchise tax from $75,000 to $150,000.

Barry Smith

Podcast

NC Left Repeats False Claim About Income Tax Hike

Becki Gray on impact of tax reform on N.C. households; supporters of health care regulatory reform explain the benefit; advocates for & against legislative involvement in Greensboro election districts make their case; Del Ratcliffe & Caleb Miles discuss regulatory burdens for the golf industry; Katherine Restrepo on legal fate of Obamacare subsidies

Katherine Restrepo, Becki Gray

Podcast

How Tom Ross Can Maximize His Final Year At UNC

Jane Shaw on Tom Ross legacy at UNC; Phil Berger & Tim Moore on taxes, incentives & economy; courts commission members on electing v. appointing judges; Miles Rapoport on redistricting reform; Roy Cordato on impact of lower gas prices

Jane S. Shaw, Dr. Roy Cordato

Podcast

Obamacare: Is It The Success Supporters Claim?

Katherine Restrepo on Obamacare's future; Phil Berger & Nelson Dollar on tax reform & economic health; legislators discuss the privilege license tax; Andy Baxter & Terry Stoops on teacher pay; George Leef on Supreme Court ruling on racial preference ban

Katherine Restrepo, Dr. Terry Stoops, George Leef

News

McCrory Signs Tax Bill Covering E-Cigs, Local Business Taxes

RALEIGH — The Senate gave initial approval to House Bill 1050 Wednesday and made its final vote just after noon Thursday. The House concurred with the Senate version an hour later, and Gov. Pat McCrory signed the bill at 4:05 p.m. The bill also did away with local privilege license taxes assessed by cities and towns. More than 300 North Carolina municipalities assess some sort of privilege license tax, bringing in $62.2 million annually.

Barry Smith

Opinion