GOP crowing over CNBC study touting NC for business

A week after S.C. Gov. Nikki Haley's jobs-recruitment victory lap through York and Chester counties just south of Charlotte, N.C. Republican leaders are pointing to a new CNBC study as evidence that the Tar Heel State isn't getting crushed by the Palmetto State or other economic development rivals on their watch. The study ranked North Carolina No. 5 (Georgia was No. 1, followed by perennial development powerhouse Texas). The study measured a range of factors; North Carolina ranked most strongly on the health of its economy and the quality of its workforce.

South Carolina ranked a distant 24th, earning its strongest ranking for its low cost of doing business. N.C. Republican Party Chairman Claude Pope issued a statement calling the study proof that the GOP's legislative agenda, which includes rolling back tax rates and revamping job recruitment, is working. "North Carolina is getting back to work," he said.

Gov. Pat McCrory and his GOP allies have rewritten
the state's job-recruitment playbook

Critics -- including some insiders in economic development circles -- grouse that the state has traditionally ranked high in such measures, the effects of the recent recession notwithstanding. The new lower corporate and individual tax rates took effect in January, and it was just on Tuesday that McCrory signed into law the reorganization of the Commerce Department's job-recuitment function.

Republicans, the critics say, "fixed" a job-recruitment system that wasn't broken. Democrats, powerless in Raleigh after decades of wielding legislative power, say the tax cuts have benefitted the wealthy while weakening funding for schools and universities, traditionally areas of competitive advantage for North Carolina relative to its Southern neighbors. With such high political stakes riding on job production numbers in an election year, we're sure to hear plenty more of this debate in the months ahead.

Confused by the N.C. tax law changes? This will help

The N.C. General Assembly made so many changes to the tax code last session that most of us are still trying to figure out exactly what it all means. And, if you're anything like me, what you're really wondering is: did they figure out a new way to stick it to me come tax time? Help is on the way for confused taxpayers in the form a new online summary of the tax changes, courtesy of the N.C. Association of Certified Public Accountants.

The summary, in an easy-to-follow chart format, lays out all the changes. A couple have already come to the notice of Observer readers, who wrote me after my broader story about the tax changes was published last Sunday. Several seniors wanted to know why under some scenarios retirees were seeing tax hikes. No changes were made to the way Social Security is taxed, but you'll note from the chart that a deduction for the first $2,000 of private retirement income such as IRAs or 401ks is going away. Also noticed by readers: no more deducting medical expenses -- something that could have an impact on seniors living in nursing facilities who receive thousands of dollars worth of medical care annually. And of particular interest to small business owners, the deduction for the first $50,000 of net business income -- $100,000 for couples filing jointly -- also goes away.

I suspect there are many more taxpayers who will get lowered bills than those who will see increases. Still, there's lots to think about with the new tax law. Bonus note: the chart also very handily lets you know when the various changes actually take effect.