NC Budget and Tax Center

Tax Foundation’s newest ranking leaves much to be told

We are once again hearing about North Carolina’s business climate moving toward top-ten status among states according to a new ranking by the Tax Foundation, a tax policy research organization that favors tax cuts. North Carolinians should be leery of jumping on the celebration band wagon, however.

As I’ve highlighted before (see here and here), this ranking provides no insight whatsoever regarding the actual fiscal and economic health of the Tar Heel State. Instead, the ranking simply continues to applaud more tax cuts that have largely benefited the highest income earners in the state and profitable corporations. The ranking tells us nothing about the negative impact of the more than $2 billion in annual revenue loss once all tax changes are in place. These tax cuts represent lost resources that could be used to boost investments in public schools, provide health services for the elderly and poor, and ensure that all communities across the state can thrive.

A smart business leader understands that simply being told how much revenue a business generates tells her nothing about whether the enterprise is profitable. Furthermore, a prudent business leader understands the importance of making adequate investments to ensure the long-term success of the business.

North Carolina’s move up the Tax Foundation ranking just means lawmakers have prioritized tax cuts over important public investments in things like public schools so they can offer every child a high quality education. This flawed priority may zip the state up the Tax Foundation ranking, but this supposed short-term gain poses a huge potential long-term cost.

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

Nothing is off the table when it comes to Republican judicial reform, and a former Wake County judge [...]

On a cozy autumn evening at the luxurious Umstead Hotel in Cary, a medley of corporate luminaries, s [...]

A fix for North Carolina’s class size crisis in March? A GOP senator from Wake County tells his cons [...]

Back in September, the N.C. Historical Commission put off a decision on removing three Confederate m [...]

Mounting student debt is a nagging problem for most families these days. As the cost of higher educa [...]

Latest racist attacks on immigrants could be an important tipping point As bleak as our national pol [...]

Grand constitutional questions in this country aren’t settled until the Supreme Court has its say, e [...]

The post Gerrymander struck down appeared first on NC Policy Watch. [...]

Upcoming Events

Featured | Special Projects

NC Budget 2017
The maze of the NC Budget is complex. Follow the stories to follow the money.
Read more


NC Redistricting 2017
New map, new districts, new lawmakers. Here’s what you need to know about gerrymandering in NC.
Read more