Governor Pat McCrory says he is in “strong disagreement” with the NC Senate’s new economic development plan. The proposal put forth Wednesday would cut the corporate tax rate and shift how incentives are administered.
The governor told members of the N.C. League of Municipalities that the Senate’s plan “breaks the bank” and would serve only to divide North Carolina.
Specifically the Senate’s jobs bill would lower the corporate income tax to four percent beginning in 2016 and three percent beginning in 2017, making North Carolina’s rate the lowest in the Southeast.
The bill would also limit the state’s incentives money going to Wake, Mecklenburg and Durham counties. The measure would guarantee projects in North Carolina’s other 97 counties receive more than half of incentives funding going forward.
The director of the NC Budget & Tax Center said the Senate leadership fails in several areas with this proposal:
“The corporate tax cuts in the Senate’s proposal would further reduce revenue for investments in our public schools and universities and other building blocks that help drive the success of businesses,” said Alexandra Sirota of the Budget & Tax Center. “Businesses need an educated workforce and modern infrastructure to be successful. Cuts to the tax rates for profitable corporations or changes to the way corporate income is considered for purposes of taxation also won’t address falling wages for the average North Carolinian. Furthermore, the Senate proposal changes to taxes paid by profitable multi-state corporations would not guarantee reinvest in our state and be at the expense of small, home-grown North Carolina businesses.”
To hear the Gov. McCrory discuss the Senate’s jobs plan, click below. Read more about the Senate proposal here.