colorful waving flag of north carolina state on a american dollar money background. finance concept
colorful waving flag of north carolina state on a american dollar money background. finance concept
Press Release

NC advocates support introduction of bill to halt corporate income tax elimination

Keeping the corporate income tax rate at 2.5% is ‘the least we can do’ for struggling North Carolinians

(Thursday, February 23) — Advocates and organizations around North Carolina applauded the introduction of the Make Corporations Pay Their Fair Share bill in the NC Senate and House this week that would halt the phasedown of the corporate income tax in North Carolina at the current rate of 2.5%.

Senate Bill 142 — with primary sponsors Senators Lisa Grafstein (District 13), Julie Mayfield (District 49), and Natalie S. Murdock (District 20) — and House Bill 165 — with primary sponsors Representatives Marcia Morey (District 30), John Autry (District 100), Pricey Harrison (District 61), and Gloristine Brown (District 8) — are in response to the budget that lawmakers passed in 2021 that scheduled the corporate income tax rate to drop to zero by 2030.

Corporations doing business in North Carolina currently pay a 2.5% income tax rate, already the lowest in both the Southeast and the nation, among states that tax corporate profits.

“North Carolina families have been dealing with economic uncertainties for too long – not knowing whether they will have child care so they can work, whether their work will pay enough for bills, whether they can keep a roof over their heads and food on the table,” said Alexandra Sirota, Executive Director of the NC Budget & Tax Center.

“When our elected leaders make wealthy corporations pay what they owe through taxes, our shared resources can deliver the programs, schools, and supports all of our families need to move forward with certainty that North Carolina is a great place to live and work for everyone.”

A recent survey shows that North Carolina voters overwhelmingly reject state lawmakers’ previous decision to eliminate corporate income taxes, with 69% of respondents reporting opposition to the cuts and only 9% strongly supporting lawmakers’ choice.

Organizations across the state shared their support for the Make Corporations Pay Their Fair Share bill.

Marcus Bass, Deputy Director of the NC Black Alliance:

“The provisions made to help big business thrive in the midst of the pandemic have come at a huge cost to the residents across North Carolina, particularly in rural economically challenged counties. This bill represents the state’s ability to balance the burden and will put us in a better position for an economic rebound for all residents who work live and conduct business in our state.”

MaryBe McMillan, President of the North Carolina State AFL-CIO:

“Rich corporations and Wall Street have made record profits while raising costs for working North Carolinians at the gas pump, in the grocery store, and just about everywhere else for the last few years.

“Keeping the current corporate tax rate is the least we can do to support the workers who created that wealth in the first place. Most people believe corporations should pay their fair share, and it’s time for that truth to start driving policy in Raleigh.”

A statement from Every Child NC:

“We’ve got to stop taking money away from our children and adding it to corporate bank accounts. Corporations already contribute an extremely low amount in taxes for public education and our communities.

“We support this bill because it keeps what little tax revenue they are contributing here in North Carolina. We need to do more to deliver the education our children are constitutionally owed, but this is a commonsense step in the right direction.”

Additional co-sponsors of the bills included Representatives Cynthia Ball (District 49), Deb Butler (District 18), Rosa G. Gill (District 33), Zack Hawkins (District 31), Carolyn G. Logan (District 101), Tim Longest (District 34), Lindsey Prather (District 115), Caleb Rudow (District 116), and Julie von Haefen (District 36) in the NC House, and Senators Val Applewhite (District 19), Graig Meyer (District 23), Gladys A. Robinson (District 28), Kandie D. Smith (District 5), and Joyce Waddell (District 40) in the NC Senate.

More resources

 

ABOUT NC BUDGET & TAX CENTER: The NC Budget & Tax Center is a non-partisan, nonprofit organization that documents fiscal and economic conditions in communities to support the work of people, organizations, and government to advance solutions to poverty and pursue racial equity.

ABOUT NC BLACK ALLIANCE: NC Black Alliance is working toward state-level systemic change by strengthening the network of elected officials representing communities of color throughout the state and collaborating with progressive, grassroots networks on intersecting issues. These issues range from voting rights, gerrymandering, criminal justice reform, health and wellness, economic development to education. The Alliance is an intergovernmental network of African American legislators, county commissioners, school board members, and municipal elected officials centered by a commitment to ambitiously address broad issues of inequality and fairness.

ABOUT NC STATE AFL-CIO: The North Carolina State AFL-CIO is the largest association of local unions and union councils in North Carolina, representing over one-hundred and forty-thousand union members, fighting for good jobs, safe workplaces, workers’ rights, consumer protections, and quality public services on behalf of ALL working people.

ABOUT EVERY CHILD NC: Every Child NC is a community-led, statewide coalition of organizations, parents, teachers, and students who advocate for every child’s constitutional right to a sound basic education.

 

For more information, contact Mel Umbarger, NC Budget & Tax Center Communications Manager, at [email protected]; or Alexandra Sirota, NC Budget & Tax Center Executive Director, at [email protected].