New Study: NC has LOWEST business tax burden in U.S.!

They’ve done it again. Those pesky researchers over at Ernst & Young just released the latest version of their annual state and local business tax burden study. The study finds that North Carolina has the LOWEST business tax burden in the U.S. According to the report total state and local taxes paid by businesses in North Carolina consume fully 3.6% of the Gross State Product. That is the LOWEST percentage of any state in the country.

Hmm..maybe it’s time to close a few of those costly corporate tax loopholes that our state’s leaders have known about for years. It appears that we have at least a wee bit of room to maneuver when it comes to asking businesses to pay their fair share of taxes. After all, businesses benefit considerably when the state has decent roads, a healthy and educated workforce and a clean environment. And that’s pretty much what government spends most of its money on. Don’t tell the NC Chamber of Commerce but the tax-cutting portion of its legislative agenda looks even more irrelevant now than it did before. On second thought, go ahead and tell them.


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  3. IBXer

    February 13, 2009 at 9:07 am

    Too bad the taxes on the people who own and work for those businesses are among the highest taxed in the South East.

  4. Elaine Mejia

    February 13, 2009 at 10:13 am

    Clearly you are referring to some of our nominal tax rates (like the sales tax RATE and the top income tax RATE. In fact, they do not reflect the real tax burden in NC because the base for our taxes is so small. The sales tax base excludes food and services and therefore only applies to about a third of the transactions in the state. And the starting poing for calcuating personal income taxes is federal taxable income that excludes much of what most people earn – a much smaller base than virtually all aother states use. So if you’re going to throw around that “highest in the southeast” bit please back it up with something more meaningful that simply our nominal rates because they do not reflect our real tax levels.

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  6. Daniel

    April 3, 2009 at 8:44 am

    I was thinking of moving from Taxachusetts to NC to bring my business BECAUSE of the lower tax burden. Perhaps I should pay attention to the sage thoughts of Elaine and not bring the high paying, high tech jobs to a state where the population does not appreciate them.

  7. FactChecker

    August 27, 2009 at 4:10 am

    Dannny, I am afraid you are wrong, and using false conservative rhetoric, NC business tax burden is among the nation’s highest its just that NC has used corporate subsidies to attract certain businesses and has loopholes.

    Massachusetts tax burden is much lower, than north Carolina, in fact is middle of the pack, Taxachuesetts no more http://www.taxfoundation.org/taxdata/topic/35.html.

    North Carolina on the other hand has among the state’s worst business tax climate unless of course you are a well-paid big business that gets corporate loopholes (as shown above) aka Google and others.

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