North Carolina currently ranks number 2 out of all 50 states for “Current Economic Outlook” according to richstatespoorstates.org. This is a forward looking forecast, it is configured based on North Carolina’s standing in 15 key state policy variables. The data reflects state and local rates/revenues and any representation of federal deductibility. Because of the budget passed in 2021, North Carolina’s recently adopted reforms reduced the state’s flat income tax rate with a plan to phase out corporate income tax. Effective January 1st of this year, North Carolina’s flat individual income tax rate was reduced from 5.25 to 4.99%.
“Seeing a surge in North Carolina’s ranking demonstrates that the sound economic policies that Republicans have put into practice over the last decade continue to pay off for the taxpayers and job creators of our state.” Stated Representative Jason Saine, Senior Chair of the House Appropriations Committee, “By tackling the tough task of tax reform and continuing to keep a watchful eye on spending, we continue to outperform other states.”