Staff reports-Governor Pat McCrory made clear the virtues of the legislature’s recent tax cuts to an enthusiastic crowd of well over 100 people at a Council of Independent Business Owner’s (CIBO) luncheon this past Monday.
McCrory went into much detail to explain the main points of his economic plan recently enacted in Raleigh. The main focus throughout his forty minute talk was to emphasize the importance of building an environment so that business owners would be able to create jobs…and more jobs. The State has to create competitive conditions to succeed and his focus was to be sure that North Carolina was second to no one.
One of the most important elements of his plan as enacted was to completely overhaul North Carolina’s tax system.
Up until now the state had the third highest unemployment rate in the country and was one of the highest taxed states as well…until just a few weeks ago.
“As an outsider, I’ve watched as committee after committee after committee, commission after commission after commission, governor after governor after governor, legislators after legislators after legislators, yes, Democrats and Republicans and Democrats and then again Republicans say, ‘We had to reform our tax system in North Carolina,’” McCrory said. “Well, we’ve done it. We have to have jobs, and now we can go get them.”
The tax reform package ranks as the most significant plan in the United States likely to be approved in 2013, said an analyst who studies tax reform proposals across the country.
The new tax bill will cause a reduction in the top marginal income tax rate from 7.75 percent now to 5.75 percent in 2015. This bill pretty much blew away the other states who worked on tax reforms. It jumped North Carolina from 44th to 17th in the nonpartisan Tax Foundation’s State Business Tax Climate Index, which includes personal and corporate income taxes, as well as sales taxes, property taxes and unemployment insurance.
The plan will eliminate the personal income exemption while increasing the standard deduction. The standard deduction will be $15,000 for married taxpayers filing jointly, $12,000 for heads of household, and $7,500 for single taxpayers and married taxpayers filing separately.
“Shame on us if we continued to do what we were doing,” he said.
CIBO members and guests filled Magnolia’s Restaurant, and applauded Governor McCrory for his informative talk on his economic plan for North Carolina.