The majority of business relocations and start-ups ended up in Charlotte and the Triangle, which have become liberal strongholds in recent years.
Senator Paul Newton, R-Cabarrus, attempted to highlight the income tax portion of HB334 during the Senate Rules session. He reiterated his confidence that the abolition of the corporate tax rate will result in more companies choosing to open or relocate in the state.
Newton estimated that up to 250,000 North Carolinians with low to middle incomes would “pay no (state) taxes at all” after HB334 was passed.
Newton said projected annual tax revenue growth will offset the combined loss of $ 2.07 billion in tax revenue through 2025-26.
Newton said companies tend to make decisions “more based on signals.” He said a strong signal to them is knowing there will be no corporation tax in 2028.
“They can feel comfortable, profitable, and healthy, and their employees would love to be here,” Newton said.
Newton said that “the Republican philosophy if the government is raising more money than it needs is to give it back through tax breaks, and that is what we are doing here.”
Senator Wiley Nickel, D-Wake, has criticized the current version of HB334, saying that “at a time when companies are making record profits and wealth and income inequality are at their highest, they are hoping to raise taxes for the rich and big reduce”. Corporations again.