(The Center Square) – Most North Carolinians who responded to a recent poll are against the abolition of corporate tax.
State Innovation Exchange, a strategy center at the University of Wisconsin-Madison, led a Survey of 1,113 registered voters from July 6th to July 11th. The survey results showed that 66% of respondents are against a complete abolition of the state’s corporate income tax.
The North Carolina General Assembly is considering two laws that would abolish corporate taxes for companies over five years.
The Senate voted 36-14 last month for approval House bill 334. It gradually lowers corporate income tax over five years from 2024. The Senate has also included the regulation in its budget proposal for the biennium. The proposals must now be examined by the House.
The state corporate income tax rate is 2.5% of a company’s net income. If the policy changes, North Carolina would be the seventh state with no corporation tax.
When respondents were told that the proposal would cost the state $ 5 billion annually in tax revenue, 68% of respondents said they opposed the plan.
Most of the respondents were women (53%) and over 50 years of age. Respondents were split across party lines, with 37% identifying as Democrats, 34% Republicans and 28% Independent, but going both ways. 37 percent of respondents said they were conservative and 35 percent said they were moderate.
Most Democrats (74%) said they were against the abolition of corporate taxes in North Carolina. Republicans and Independents were roughly the same, with 59% and 58% opposing the concept, respectively.
About 44% of those polled lived in rural North Carolina and 25% were black.
Poll results showed that 63% of rural voters opposed the abolition of corporate taxes, and 62% of black voters also opposed the proposal. When the loss of revenue was mentioned, 70% of black voters said they opposed it.
Voters were also asked whether the American Rescue Plan Act money should be used to make new investments in families and businesses in North Carolina or to pay for existing state budget obligations, including the abolition of corporate taxes.
Most of the respondents (58%) said the state should use federal aid for new investments.
Black voters overwhelmingly supported the spending approach. The results showed that 76% of black voters believe that the money should be used for new investments. Rural voters were more likely to agree with the overall view, with 59% of rural voters choosing new investment as a priority.
14 percent of voters said the state should focus on using the federal money for new investments, existing obligations, and corporate tax cuts. Another 12% said they prefer it for existing obligations and corporate tax cuts.
The results showed that 88% of voters believe North Carolina should use ARPA funds to support, educate and train the workforce. Another 86% think lawmakers should invest in grants for small businesses in communities hard hit by the pandemic. Only 27% said lawmakers should use the aid specifically for corporate tax abolition.
The survey error rate was 3.5%. Of the 1,113 responses, 800 were weighted to adjust the data to ensure that the sample reflects the characteristics of the state’s population.