Strong Economic News for NC

The NC General Assembly Fiscal Research Division and the Office of State Budget and Management just released strong economic news for NC families and businesses.

North Carolina revenues have increased substantially beyond projections:

"The Office of State Budget and Management and the legislature’s Fiscal Research Division agreed with the year-to-date numbers, state budget director Charlie Perusse said. His office said individual income tax revenues were $766 million above projected figures through January, while sales and use tax collections are $330 million above expectations. Corporate income and franchise tax collections were 23% higher than expected, while alcoholic beverage taxes were up 20% and real estate taxes up 52%, the budget office said."

And the Triangle Business Journal recently reported:

"Economists across the state see a brighter year ahead, and the Economic Development Partnership of North Carolina retains a robust, but evolving, pipeline of projects as the state hopes to capitalize on a talented workforce and low corporate tax rate. From a numbers standpoint, North Carolina is expected to fare well in 2022, with real gross domestic product growth forecasted at 3.1 percent to reach $673 billion, according to John Connaughton, a professor of financial economics at UNC Charlotte. Mirroring that prediction, Cephas Naanwaab, associate professor of economics at N.C. Agricultural and Technical State University, is expecting growth to be around 3 percent."

This did not happen by accident. A decade of smart budgeting, sound fiscal policies, an attractive business climate, adoption of reasonable regulation and thoughtful tax policy by a Republican-led General Assembly made this possible.

Our recently passed budget continues these sound fiscal practices. It also contained tax relief for North Carolina families:

  • Increases zero-tax bracket to $25,500.
  • Cuts the personal income tax rate from 5.25% to 3.99% by 2027, starting with 4.99% in 2022.Increases child
  • tax deduction by $500 per child.
  • Eliminates state income tax on military pensions.

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