Instead of the traditional April 15 tax day, 2020’s tax day for North Carolina was moved to today.
Due to the economic devastation caused by Gov. Cooper’s economic shutdown, North Carolina extended its tax filing deadline to July 15, ostensibly to provide some relief to taxpayers.
As folks scramble to meet this new deadline, this new tax day presents us with an opportunity to remind taxpayers just how far North Carolina has come in the last ten years.
In 2010, under the prior tax and spend liberal leadership, North Carolina was among the highest taxed states in the nation and suffered from the country’s 11th worst business tax climate.
Fast forward to today, and we see a much brighter picture for North Carolina taxpayers, thanks to a decade of conservative leadership and reforms.
Today, North Carolina’s business tax climate ranks as 15th best in the nation, a tax climate that has helped North Carolina rank as Forbes’ “Best State for Business” for three consecutive years.
Significant tax reforms over the past decade have dramatically reduced the tax burden on North Carolinians. The table below outlines the major changes:
Moreover, tax reforms have made North Carolina far more competitive with our neighboring states.
In 2010, North Carolina had the highest top marginal personal income tax rate and corporate tax rate among its neighbors, coupled with the second highest combined state and local sales tax rate.
By 2020, our personal income tax rate was second lowest among our neighbors (Tennessee has no personal income tax), our corporate tax rate was lowest, and sales tax rate second lowest.
By several measures, North Carolina’s tax rates and climate have improved dramatically. That should be cause for celebration for hardworking taxpayers.