Berger: N.C. Tax System Discourages Job Creation
October 20, 2009True Tax Reform Needed in North Carolina
Raleigh, N.C. – New research from the Tax Foundation shows that North Carolina is out of step with other states when it comes to both income taxes and sales taxes. One report indicates that North Carolina ranks fourth among the 50 states as having the highest percentage of state tax revenue being generated by individual income taxes. (“Where Do State and Local Governments Get Their Tax Revenue?,” Tax Foundation, 10/9/09) Another report shows that North Carolina has the eighth highest combined state and local sales tax rate in the nation. (“Updated State and Local Option Sales Tax,” Tax Foundation, 10/16/09) Previously, the Tax Foundation ranked North Carolina 39 among the 50 states for being business-friendly in our tax climate. (“2010 State Business Tax Climate Index,” Tax Foundation, 9/22/09)
Senate Republican Leader Phil Berger (R-Rockingham) said, “Most states that rely heavily on individual income taxes to generate revenue will maintain lower sales tax rates to draw businesses looking to spend money in the state. Most states that have higher sales tax rates rely less on individual income taxes to generate revenue to draw those looking for new jobs where they can keep more of their income. Under Democratic leadership in North Carolina, we are doing neither. We are driving away both businesses and workers. Our tax system discourages job creation.”
Senator Berger also expressed his desire for true tax reform in North Carolina saying, “When we create or recreate a tax system for our state, we display our priorities and values. True tax reform prioritizes people over government and values business over bureaucracy. North Carolina needs fundamental change in our tax system. I hope that upcoming discussions of tax reform will focus on creating a thriving environment for businesses and families in our state and not on how best to prop up government spending.”
