Emery Delasio with the Associated Press has a fascinating story about the behind the scenes negotiations as state economic development officials were trying to convince executives with Sturm Ruger & Co. to locate a new factory in North Carolina.
The company finally agreed to build a new facility in Rockingham County after receiving a incentive deal that could top $15 million.
The entire piece is worth your time, but here’s a paragraph that is especially interesting.
Emphasizing North Carolina’s allure, a state business recruiter wrote Ruger’s consultant that the state had “the 3rd lowest ‘effective tax rate’ in the nation based on multiple studies.” Gov. Pat McCrory and Republican legislative leaders were simultaneously arguing a tax cut was necessary to spur business. The cut in personal and corporate income taxes are projected by the General Assembly to be worth $524 million over the next two years.
Got that? An official with the Commerce Department was pointing out that the state’s real tax rate for corporations was the third lowest in the country while Governor McCrory and GOP lawmakers were saying every day that corporate taxes were too high and hurting economic development efforts.
The final tax agreement passed this summer and signed by McCrory cut the corporate tax rate and gave millionaires a big break too, while raising taxes on most low-income and middle class families.