New Study Concludes: North Carolina’s Economic Policies Are Providing More Jobs and Bigger Paychecks

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In Government Efficiency
Oct 10th, 2016
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2013 Tax Reforms, Unemployment Insurance Reform, and Expiration of 1-Cent “Temporary” Sales Tax in 2011 All Had Significant Positive Impact on NC’s Economy

RALEIGH — “North Carolina’s recent, major changes in economic policy have resulted, thus far, in sizable increases in economic growth, employment, and salaries, and reductions in unemployment rates.” That’s the conclusion of a new academic study released by the Civitas Institute, a study that is quite possibly the most comprehensive analysis of NC’s recent tax changes to date.

Findings include:

  • Reforming income taxes in 2013 increased employment by 8,800 jobs and state GDP by $800 million between 2013 and 2015.
  • Reducing sales tax rates in 2011 increased employment by 11,000 jobs and state GDP by $1.4 billion between 2011 and 2015.
  • Reducing maximum unemployment insurance benefits increased employment by 35,000 jobs and state GDP by $6.3 billion between 2012 and 2015.
  • Reducing the maximum number of weeks of regular unemployment insurance benefits increased employment by 88,000 jobs and reduced the unemployment rate by 1 percentage point between 2012 and 2015.

About the study’s authors:

Stephanie O. Crofton, Ph.D., is the Associate Dean of the Earl N. Phillips School of Business at High Point University, where she also serves at the Charles T. Ingram Professor of Economics. Luis Dopico, Ph.D., is a private research consultant for Macrometrix. Each author has more than 15 years’ experience in their field, and areas of expertise include macroeconomic conditions in North Carolina and the U.S., analyses of the impacts and changes in public policies, and labor market research.

To access the full study, visit: www.morejobsbiggerpaychecks.com

 

Read full article on NCCIVITAS.org