To: The North Carolina State House, The North Carolina State Senate, and Governor Roy Cooper
Stop another tax cut for profitable large corporations
North Carolina should not further cut taxes for large profitable corporations at a time when the state faces significant needs in communities, classrooms and for families who are struggling to get a foothold in the economy. The tax rate will automatically trigger down to the low rate of 4 percent despite ongoing as well as unanticipated needs like those from Hurricane Matthew.
Why is this important?
The North Carolina General Assembly put in place automatic rate cuts for profitable and powerful corporations as of January 1st that will result in $500 million less in annual revenue despite what is needed for communities, classrooms and families to thrive. Since 2013, the tax rate paid by profitable corporations has dropped from 6.9 percent to 4 percent and as of January 1st will drop to 3 percent. This is well below the 5.49 rate paid by North Carolina taxpayers on their taxable income. Given the rate is already among the lowest in the nation and the region and the evidence that shows such rate cuts do not generate boosts to the economy as promised, North Carolina policymakers should not again push an agenda that helps the powerful.
Before the end of the year, it is critical to make clear that North Carolina's elected leaders should choose people and communities over profitable corporations. The tax rate on corporate profits should remain at 4 percent.
Before the end of the year, it is critical to make clear that North Carolina's elected leaders should choose people and communities over profitable corporations. The tax rate on corporate profits should remain at 4 percent.