VICKI LEE PARKER: Permanent corporate tax cap; Not best for business

Saturday, June 23, 2018 -- Long-term corporate prosperity depends on whether a large proportion of North Carolinians are prosperous as well. A permanent 5.5 percent limit on corporate and individual income taxes is not an answer to any of our problems as businesses. In fact, it would likely create problems.

Posted 9:00 a.m. Jun 23, 2018 — Updated 6:10 p.m. Jun 23, 2018

EDITOR'S NOTE: Vicki Lee Parker is executive director of the North Carolina Business Council, a statewide nonprofit association with a mission to "connect, empower, and influence business leaders to build a vibrant economy that protects our natural resources, sustains local communities, and benefits all North Carolinians."

As a statewide organization of growing small businesses, our experience shows that long-term corporate prosperity depends on whether a large proportion of North Carolinians are prosperous as well. A significant proposed amendment to our state Constitution, Senate Bill 75, would put a permanent limit on corporate and individual income taxes into the State Constitution. This bill is not an answer to any of our problems as businesses. In fact, it would likely create problems.

It weakens funding available to support education, public safety, infrastructure, and other public services.
It rewards the biggest corporations the most, in affect arming them with deeper pools of capital to undercut their smaller local competitors.
As we look for other ways to pay for things like public safety and education, we could see sales taxes on more goods and services (and at higher rates), more , property tax increases from local governments, excise taxes and fines and fees.
It’s likely to put more tax burden on local and rural communities.

Our members believe their businesses prosper by investing in the right things.

So we care about:

A well-educated workforce: the state should lead investments in health care and education for all children, in excellent public schools that prepare young people for high-skilled jobs.
A resilient state financial structure—maintaining a balanced budget, investing in core infrastructure for growing small business—such as tech assistance, startup support.

We know that will rev the engines of businesses all across the state.

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