Tax break for businesses costs $336M in NC
RALEIGH, NC (AP) — Republican leaders in North Carolina say tax breaks for businesses that will cost $336 million are worth it because it will stimulate businesses.
But opponents of the exemptions for the first $50,000 of business income told The News & Observer of Raleigh that the money given back from the tax break would roughly equal the salaries and benefits of the 6,400 employees who lost their jobs last year to balance the budget.
The break means about 460,000 business owners save about $3,500 on their taxes. The only exemptions are corporations that issue stock and pay dividends. There is no income cap.
Supporters cite a University of North Carolina at Chapel Hill study that says the break will stimulate the economy and help create nearly 4,000 jobs in two years.
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