NC Budget and Tax Center

Report highlights that taxes and spending are not out of line in North Carolina

A report released by the Program Evaluation Division within the NC General Assembly highlights that North Carolina ranks in the middle of the pack, or better, among states for various taxes and spending metrics. For FY2009-10, metrics for which North Carolina ranked in the top half of states include:

  • Per capita state expenditures (12th lowest among states);
  • Per capita state and local taxes (17th lowest among states);
  • State and local taxes as a percentage of personal income (23rd lowest among states); and
  • Per capita state taxes (24th lowest among states).

These rankings disprove the claim that state spending and taxes in North Carolina are out of line. Our state ranks in the middle of the pack or on the lower end among states.

Additional information within the report highlights real challenges that North Carolina faces. North Carolina experienced the 6th highest percent change in population from 2001 to 2011 according to the report and ranked in the bottom half of states for a number of metrics, including: median household income (39th), unemployment rate (45th) the percentage of its population living in poverty (38th) and the percentage of its population under age 65 without health insurance (35th).

As lawmakers pursue tax reform during 2013, the claim that we need to cut taxes or eliminate whole revenue sources to be competitive doesn’t match up with these recent findings.

In particular, North Carolina should not look to its southern peer as gauges for action. Most southern states that rank better than North Carolina on taxes and spending outcomes perform worse than the state on other measures such as poverty, health insurance coverage and investment in public education – each of which impacts economic growth. Efforts to modernize the state’s revenue system should be guided by a commitment to ensure economic opportunity for all North Carolinians.

One Comment


  1. Doug

    February 26, 2013 at 3:55 pm

    Yeah, looks like we need to work on what the state takes from us in taxes to get down in the 10-12 range and we would be much better off in these rankings.

Check Also

New budget a roadmap full of potholes and an unclear destination

A new BTC report highlights how the new ...

Top Stories from NCPW

  • News
  • Commentary

Students, faculty and staff at UNC continue protest the Chapel Hill campus’ Confederate monument, “S [...]

On a sultry day last September, Megan Stilley arrived at Lanier Farms, a large swine operation in ru [...]

When North Carolina lawmakers approved what one Republican described as a “historic” investment in r [...]

Lawmakers late last week released two new versions of a judicial redistricting bill, making these th [...]

The General Assembly’s latest mashup legislation is an example of government at its worst In the com [...]

The post Tied up in knots appeared first on NC Policy Watch. [...]

Every day brings new reports that Congress is interested in further whittling away at the programs c [...]

When Congress finally passed a continuing resolution last month allowing the government to re-open, [...]

Upcoming Events

Friday, Feb. 16

12:00 PM

Crucial Conversation – Prof. Peter Edelman discusses his new book, Not a Crime to be Poor: The Criminalization of Poverty in America

Prof. Edelman is coming to the Triangle to mark the 50th anniversary of Durham-based nonprofit MDC. His visit is the first of a series of MDC-sponsored events focused on ways that Southern leaders can work together to create an Infrastructure of Opportunity that shapes a South where all people thrive.”