Wealthy corporations paying what they owe would help North Carolina thrive

Repealing the reductions in income tax rates scheduled for the next decade, in particular keeping the corporate income tax rate at 2.5 percent, would provide $1 billion dollars a year to prepare our kids for the future, keep our communities healthy, and deliver the programs that all our families need.

Keeping NC’S Corporate Income Tax Would:

  • Provide at least $1 billion to fund our communities each year1Special Data Request to ITEP, January 2022
  • Ensure that profitable corporations are contributing to the education of children, the infrastructure of workforce development and commerce, and the public health
  • Keep the tax code from getting even more rigged in favor of rich people and profitable corporations

Benefits:

  • Providing a critical source of revenue2“Statistical Abstract of North Carolina Taxes, 2021.” NC Department of Revenue, May 11, 2022. https://www.ncdor.gov/statistical-abstract-north-carolina-taxes-2021.
  • Making sure the wealthy pay what they owe in state taxes3Bivens, Josh. “Reclaiming Corporate Income Tax Revenue.” Economic Policy Institute, April 14, 2022. https://www.epi.org/publication/reclaiming-corporate-tax-revenues/.
  • Fighting inequality4Bivens, Josh. “Reclaiming Corporate Income Tax Revenue.” Economic Policy Institute, April 14, 2022. https://www.epi.org/publication/reclaiming-corporate-tax-revenues/.
  • Limiting the power and competitive advantages of big corporations5Hager, Sandy Brian, and Joseph Baines. “The Tax Advantage of Big Business: How the Structure of Corporate Taxation Fuels Concentration and Inequality.” Politics & Society 48, no. 2 (March 17, 2020): 275-305. https://doi.org/https://doi.org/10.1177/0032329220911778.

Why Now?

It is time to fix the rigged rules that allow a powerful few to amass unprecedented wealth. Tax cuts for big corporations drain away the wealth that North Carolinians create through our work, which could instead provide our communities with the housing, health care, and child care that would ensure every family has the freedom to thrive. It is time to demand that corporations pay what they owe.

  • Corporations raked in record profits during the pandemic6Phillips, Matt. “Corporate Profits Hit New Record High in 2021.” Axios, March 31, 2022, sec. Economy & Business. https://www.axios.com/2022/03/31/corporate-profits-new-record-high-2021.
  • NC is not providing the foundation for a strong start for every child in our state through affordable, quality child care and an equitably funded public education. NC is not tackling the big infrastructure and environmental challenges to ensure a better future
  • NC legislators should be helping local businesses hurt by the pandemic – businesses owned by women and people of color who fueled the job growth from the last recovery7Liu, Sifan, and Joseph Parilla. “Businesses Owned by Women and Minorities Have Grown. Will COVID Undo That?” Brookings Institution, April 14, 2020. https://www.brookings.edu/research/businesses-owned-by-women-and-minorities-have-grown-will-covid-19-undo-that/#:~:text=On%20average%2C%20MWBEs%20have%2030,and%20for%20the%20economy%20overall. – not multistate corporations that may not create new jobs in the NC communities that need them

When we join together to make wealthy corporations pay what they owe North Carolina, we can make this state a place where we all have what we need to overcome our challenges and keep our families safe and well.

Footnotes

  • 1
    Special Data Request to ITEP, January 2022
  • 2
    “Statistical Abstract of North Carolina Taxes, 2021.” NC Department of Revenue, May 11, 2022. https://www.ncdor.gov/statistical-abstract-north-carolina-taxes-2021.
  • 3
    Bivens, Josh. “Reclaiming Corporate Income Tax Revenue.” Economic Policy Institute, April 14, 2022. https://www.epi.org/publication/reclaiming-corporate-tax-revenues/.
  • 4
    Bivens, Josh. “Reclaiming Corporate Income Tax Revenue.” Economic Policy Institute, April 14, 2022. https://www.epi.org/publication/reclaiming-corporate-tax-revenues/.
  • 5
    Hager, Sandy Brian, and Joseph Baines. “The Tax Advantage of Big Business: How the Structure of Corporate Taxation Fuels Concentration and Inequality.” Politics & Society 48, no. 2 (March 17, 2020): 275-305. https://doi.org/https://doi.org/10.1177/0032329220911778.
  • 6
    Phillips, Matt. “Corporate Profits Hit New Record High in 2021.” Axios, March 31, 2022, sec. Economy & Business. https://www.axios.com/2022/03/31/corporate-profits-new-record-high-2021.
  • 7
    Liu, Sifan, and Joseph Parilla. “Businesses Owned by Women and Minorities Have Grown. Will COVID Undo That?” Brookings Institution, April 14, 2020. https://www.brookings.edu/research/businesses-owned-by-women-and-minorities-have-grown-will-covid-19-undo-that/#:~:text=On%20average%2C%20MWBEs%20have%2030,and%20for%20the%20economy%20overall.
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