NC Tops states with best economic outlook for 2016

by Americans For Prosperity, April 20, 2016.

North Carolina has come a long way from its days as the state with the highest income tax in the southeast. Americans for Prosperity and its local activists have been hard at work in North Carolina, holding legislators accountable and advocating for issues like lower taxes, labor reforms and school choice. Finally, we see our efforts are paying off in a big way!

The strength of AFP’s free market approach in North Carolina shines through in the American Legislative Exchange Council’s (ALEC) annual report Rich States, Poor States. The report ranks all 50 states on 15 policies that effect the ability of the state to create jobs and provide economic opportunity for their residents.

As recently as 2013, North Carolina ranked a respectable but hardly noteworthy 22^nd in ALEC’s rankings. In this year’s report, North Carolina ranked 2^nd for best economic outlook in 2016 out of all 50 states.

North Carolina’s turnaround and newfound prosperity is by-far the most telling example of what can happen when states spend less and tax less.

Here are just a few of AFP’s big wins in North Carolina that made this top ranking possible:

• Tax cuts- Since 2011, North Carolina lawmakers have cut income taxes twice, cut corporate taxes, cut federal unemployment taxes and repealed a sales tax hike, all with vehement opposition from state-based liberal groups and the mainstream media.

• Medicaid expansion- Despite pressure from the Obama administration’s federal health officials, North Carolina is holding the line in opposition of Medicaid expansion. The rejection of Obamacare’s Medicaid expansion has helped protect North Carolina from this key aspect of the federal government’s healthcare takeover.

• School choice- AFP has been a long-time proponent of school choice in North Carolina. In 2016, AFP North Carolina sought to expand parents’ education options further by asking state legislators to lift the 20 percent cap on annual charter school enrollment, double funding for Opportunity Scholarships that offer school choice to low-income students and allow open enrollment in the public school systems.

• Capping corporate welfare- AFP fought against the expansion of North Carolina’s Job Development Incentive Grant (JDIG) fund, which lets public officials direct taxpayer cash to select corporations in return for promises to operate in-state. This kind of ribbon-cutting corruption violates a slew of limited government principles, pervades political influence in our private economy and damages free-market competition.

• Eliminated energy handouts- In 2015, AFP North Carolina supported the removal of a renewable energy investment tax credit from the state budget, which had siphoned more than $220 million from state coffers since 2010.

• Unemployment insurance reform – In 2013, the state reformed its unemployment insurance program and used the savings to cut taxes, not only for businesses, but citizens as well. As a result, North Carolina’s corporate tax rate is down to 4 percent from nearly 7 percent.

• Job licensure reform- AFP urged state lawmakers to limit the government licensure of a dozen occupations including public librarians, translators and acupuncturists. North Carolina licenses three times as many professions as South Carolina.

• Death tax repeal- AFP supported North Carolina’s death tax repeal, also known as the estate tax, in 2013. Family-owned farms and businesses are most vulnerable to the death tax. When one generation wishes to pass family business assets down to the next generation, the death tax can threaten the continued viability of the business’ operations.

We’ve successfully rolled back major portions of North Carolina’s reckless tax-and-spend past, but we know that growth in the state is just beginning. Let’s keep North Carolina on the path to prosperity.

https://americansforprosperity.org/north-carolina-tops-ranking-states-best-economic-outlook-2016/