The Washington D.C.-based Tax Foundation, perhaps the nation’s most comprehensive clearinghouse on tax policy and education, today revealed its 2010 State Business Tax Climate Index. The Index is designed to gauge each state’s competitiveness in terms of its tax code relative to how attractive it will be to business growth.
North Carolina’s dismal ranking of 39 is unchanged from last year, and still worst in the Southeast. Worse still, the Tax Foundation’s rankings were assembled before North Carolina introduced more than $1 billion in new taxes.
Considering that NC managed to raise sales, personal income and corporate taxes (along with “sin” taxes and digital taxes), North Carolina’s ranking could very well drop in to the bottom ten next year once the changes are included.
Like the previous recession, North Carolina lawmakers opted for tax hikes rather than real spending reform. You can bet the outcome – NC’s economy lagging the region and nation during the recovery – will also be the same.