South By North Strategies, Ltd.

A new Policy Brief from the N.C. Budget and Tax Center argues that the proposed changes to the state corporate tax code only offers “false help.”

Small‐ and medium‐sized businesses are the engine of job growth in the state, and very few would benefit from reducing the state corporate income tax rate. As of 2005, only about 28,0008of North Carolina’s more than 775,000 businesses (more than 175,000 of which were employers)9paid any corporate income tax. In the same year, 217 corporations accounted for nearly three of every five dollars in corporate income tax payments. Thus, approximately three‐fifths of any corporate tax cut would flow to 0.12 percent of North Carolina’s private employers.