As the state prepares for yet another tax cut that disproportionately benefits the wealthy and corporations, conservatives are crowing that North Carolina will climb in the rankings of the Tax Foundation’s “Business Tax Climate Index.” However, the tax cuts have little or nothing to do with our economic well-being. Before the tax cuts, when our Business Tax Climate ranking was an abysmal 44th in the nation, our economy was stronger compared to our neighbors. That’s not true anymore. So conservatives can claim that tax cuts are good because they allow people to keep more of their money, but claiming tax cuts dramatically improved our economy is just dishonest.
Business Tax Climate has always been a bullshit indicator pushed by a free-market think tank. Consistently, states that ranked low on their scale had strong economies. The implication of their scale is that taxes and tax rates are the leading criteria for businesses deciding where to locate. That’s just not true.
While we have a strong business climate in the state now, it was stronger compared to our neighbors before the tax cuts. From 2000 to 2013, we tied with South Carolina as the leader for income growth among our neighbors. From 2014 to 2020, our income growth trailed Georgia and South Carolina and is on par with Tennessee.
Before Republicans implemented their tax cuts, our job growth was the fastest in our region. Today, we trail Georgia and South Carolina and, again, are on par with Tennessee. The so-called improved Business Tax Climate certainly hasn’t done anything for jobs.
Finally, our total economic output since the tax cuts took effect is less than that of our neighbors. From 2014 to 2020, Georgia and South Carolina had GDP of 14.7% and 12.3% respectively while North Carolina’s was only 9.5%. Our ranking on the Business Tax Climate Index may have improved but our ranking in real life has not.
North Carolina is not better off economically because of tax cuts. We’ve always been a business-friendly state. Even if we ranked low on the Business Tax Climate Index, we ranked high among the people who make decisions about where to locate. Instead of making low taxes the main indicator of competition, we used to focus on a balanced tax structure that kept a well-trained workforce through a top-tier university system and community college system. We provided good roads and a solid infrastructure. Businesses saw more than just low taxes. They saw a high quality of life.
We also offered a welcoming environment. Under Republicans, that’s changed. We’ve consistently sent a message that North Carolina under GOP control is not open to the LGBT+ community. From Amendment One to HB-2 to Lieutenant Governor Mark Robinson’s insulting and demeaning comments, the GOP has told them they aren’t welcome here. We will never know how many businesses decided NOT to locate here because of our Republican leaders and their backwards attitudes.
Businesses today make decisions about where to locate based on a lot of criteria besides tax rates. They want amenities and the infrastructure to attract and retain a high quality work force. Our taxes have never been too high, but our state was once far more welcoming.
Thank-you for this dose of reality, Thomas. There is more to the attractiveness of a state than its tax-rates.
Gee my taxes went up (call them user fees, a tax in sheep’s clothing) . The only way I saved on taxes was to retire. Still paying user fees. Schools around here have to hold more fund raisers. Thanks Republicans. Oh let’s get the gerrymandering fixed. While they are thumping their chests.
Is there any topic you know anything about?
“As the state prepares for yet another tax cut that disproportionately benefits the wealthy and corporations.”—( Because those who are not wealthy, Man their businesses and employees will really suffer paying less! I can see the protests now! PLEASE raise our taxes we have too much money!)
…However, the tax cuts have little or nothing to do with our economic well-being. Before the tax cuts, when our Business Tax Climate ranking was an abysmal 44th in the nation, our economy was stronger compared to our neighbors.”—( See if you were honest, you’d cite where got got this info, but since you made it up You won’t)
…”That’s not true anymore. So conservatives can claim that tax cuts are good because they allow people to keep more of their money, but claiming tax cuts dramatically improved our economy is just dishonest.” —(Claim? lol. What is an economy made of? Its made of people. When they have more money to do what they want, when, where, how they want. That is good. Even if the state benefits NOTHING its still better.)
The next few paragraphs are a mess equating personal income growth with business climate and economic output etc. Its obvious you don’t know a thing about it so I am ignoring it I’m in no mood to toss pearls before swine today.
…”We’ve consistently sent a message that North Carolina under GOP control is not open to the LGBT+ community. From Amendment One to HB-2 to Lieutenant Governor Mark Robinson’s insulting and demeaning comments, the GOP has told them they aren’t welcome here.” —(Given that demographic is a teeny tiny percentage probably less than 1% of the population I think we’ll be ok. And the lack of transgender rape is a bonus! We’ll just let Virginia have all of that great action!
In the end we cant make everyone happy and with the LGBTIABBQWTF+ pushing porn on our kids we are probably better off. But there is hope! I understand California is in need of a few hundred thousand people so there is plenty of opportunity there! Good Luck to them I say!” another bonus is that getting a moving van to California is cheap and easy since there are so many to be had! Its divine will I say! Go with God, or Gaia, or Baal or whatever, just go get that opportunity!
…Businesses today make decisions about where to locate based on a lot of criteria besides tax rates…( Perhaps, but Money (taxes) is the NUMBER ONE REASON. The other stuff they can deal with but lower cost is number one)
Businesses are coming here because of the Legislature is sane and won’t rape them in taxes. Its not hard to figure out. Businesses are leaving California (for example) because the legislature is INSANE and RAPING them with taxes… see?
Democrats are the only people I know who complain when the government doesn’t take their money. Why don’t you guys pool all they extra money you don’t want and send it in? and leave everyone else alone.
My gracious, Phoenix, that fire must have burned a butt feather or two getting up this morn. A lidocaine patch might help.
Or perhaps a bit deeper dive into economics? 🙂
Uncle Grumpy
lol. 😉
Christ, what an imbecile.
Phoenix, you are being an evil little troll again! Your back to copying what folks write and then offering up commentary that is so off topic it is laughable. Remember, what I tried to teach you about quotation marks. Reminder “ “ ! Judging from some of the comments you receive, folks find you amusing, but I prefer the word pathetic!
If you are going to ask someone to cite their sources, you might want to cite yours as well. As a small business owner I used to get a tax break from the state. Then they decided to give it to the large corporations instead. Who do you think can absorb that cost more? A small business or a large corporation? Small businesses are the largest employers in the country. Part of the lure of big businesses to the south is that we are right to work states. Non union lower wages and no benefits jobs. The cost of living WAS appealing as well. Notice I said was.
I’m in a segment of the hospitality industry. When the bathroom bill was passed I lost tens of thousands of dollars due to boycotts of the state. I don’t know what rapes you are referring to committed by transgenders. I did look it up and they are the ones being raped and murdered. Should there population percentage make any difference? What is the percentage of people who are like you in this state? Does that attract or deter people who may be relocating here? The bullsh*t here I fear is coming from you, unless you can provide evidence to the contrary
MS Myer, in a report made by CNN the Republican ‘Bathroom bill’ cost North Carolina $3.76 billion. These losses occurred largely in your industry. But I believe that figure fails to comprehend the losses suffered in terms of long-term development, like high quality manufacturing operations offering good salaries and benefits like BMW, Mercedes-Benz, and a few others not built in NC as they sought to minimize damage to their public image by putting their companies in the middle of a stupid controversy, that carried no punishment, but that are currently covered in NC Criminal Statutes. We had the laws on the books, and they were being enforced. This bathroom law was nothing more than a feeble attempt to promote the personal views of some religious leaders for political purposes. They did noting to promote public safety.
Couple this with the COVID losses, it is a wonder folks like yourself are still in business. There are arguments that the COVID threat could have been handled with a higher degree of expertise, for example telling folks it will all go away in “April” or shoot yourself up with chlorine, don’t wear masks and then promoting a drug designed to treat malaria, while making behind the scenes investments in the company manufacturing that drug has not done much for your industry. (Huff Post, dated 04/07/2020 research piece by Ron Dicker)
Taxation is the life blood of government. But shifting the Lyons share to the middle class, while cutting the obligation to those who benefit most from government services (the fat cat) , like good roads, police, and fire protection. I am sure you read the trade papers, several of which have addressed the points I mentioned; therefore, I am omitting citations. This mess sort of speaks for itself, there is nothing new here. Republican tax cuts benefit the wealthy, and the middle class are the folks who pay for them.
Phoenix, if all your points are true, and, as you claim, everyone knows that Republican policies in NC have us approaching Nirvana, why do the Republicans need to gerrymander our legislative districts? You would think they would be confident that free and fair elections would be to their benefit, and yet they have rigged every election for the past decade, with our courts ruling that there has not been a constitutionally legitimate election held in NC since the Republicans were in control.
As you observe, corporate tax rates would be appealing to many corporations. So would a legislature that is bought and paid for, dancing to whatever tune the corporations play, with voters having no actual voice in who is elected. Heck, what’s your next bit of fiction, that Phil Berger accumulated all his wealth as a two bit attorney in Eden?