“It’s going to be something very special.” That’s what President Trump has called the latest efforts to pass a second round of federal tax cuts, following the successful passage of the Tax Cuts and Jobs Act. One look at the past four years in North Carolina will tell you that the impacts of tax cuts are very special indeed.
Business is booming in the Old North State these days, and it’s due in large part to one thing — recently enacted tax cuts. We have seen an influx of businesses from across the country moving to our state. In fact, North Carolina ranks third for cumulative domestic migration in the country, as more people and businesses move here to take advantage of our growth. Because of this success, other states are looking to North Carolina to emulate our pro-free market climate.
This past week, I attended an event led by the American Legislative Exchange Council (ALEC) in Grand Rapids, Mich. While I was there, I spoke about the impact the recent federal tax cuts, as well as the tax cuts the North Carolina General Assembly passed in 2014, are having on businesses. I also discussed why these tax cuts should serve as a model for other states around the country that wish to usher in similar economic prosperity.
According to the nonpartisan Tax Foundation, North Carolina’s corporate tax rate currently ranks third best in the country. In 2015, after passing state level tax cuts, North Carolina went from 22nd best for corporate taxes to fifth in 2018. Since that time, we have seen unprecedented economic growth across our state, the net result of which is that our citizens and businesses will retain almost $4.7 billion of their hard-earned money.
To date, more than 500 employers across the country have announced pay raises, bonuses and other employee benefits since the Tax Cuts and Jobs Act passed, benefiting more than 4 million hard-working Americans. Not only are workers seeing greater take-home pay, but job creators are providing additional benefits such as higher salaries and 401(k) hikes. This compound effect has rejuvenated our nation’s economy. It’s not just businesses that are feeling the impact; employees are reaping the benefits as well.
Just pull out your most recent pay stub and compare it to one from last December. Chances are you’re taking home more money to spend as you wish. You may have even been a recipient of a bonus some companies gave as a result of the Tax Cuts and Jobs Act. This is a good thing, especially for working families who know that even a little bit extra can go a long way to helping them do any number of things: making additional home improvements, saving up for their children’s educations or continuing their own, even just being able to buy a set of new shoes for their kids as summer approaches.
Tax cuts are a tool that gives both our citizens and our businesses a hand up instead of a hand out. I welcome more opportunities to make strides toward raising up all North Carolinians by finding additional ways of putting money back in employees’ paychecks rather than the encumbrance of additional taxes. Lowering our tax burden has made us special. It’s made us an even more desirable place to do business and has improved the lives of our citizens. We welcome other states to follow our lead.
Rep. Jason Saine represents the 97th North Carolina House District and is 2018 chairman of the American Legislative Exchange Council.