North Carolina is charging ahead of California and the reason why is surprising
Fox News
North Carolina and California are heading in completely opposite directions. One has a booming economy and the other has a deficit of $44.9 billion. Policies might be the reason.
California ranked No. 49 in the Fraser Institute's 2023 economic freedom report, which evaluates states and provinces based on variables such as government spending, taxes, labor market freedom, and more. North Carolina ranked No. 13. Donald Bryson is CEO of the John Locke Foundation, a free-market public policy think tank in Raleigh, N.C.
North Carolina's success results from deliberate and sustained conservative fiscal policies. The state embarked on a series of tax reforms, which started in 2013 and were the largest in its history. These reforms included reducing the personal income tax rate from a progressive structure topping out at 7.75% to a flat rate of 4.75%, scheduled to drop further to 3.99% by 2026. Corporate tax rates were also slashed from 6.9% to 2.5% — the lowest in the nation for states that levy such a tax — with plans to phase it out entirely by 2030.
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