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Congratulations, Governor-Elect
North Carolina made history on November 4th when it elected its first female Governor. The North Carolina Chamber, on behalf of the entire business community of North Carolina, congratulates Governor-elect Beverly Perdue, along with all who were elected or reelected to the North Carolina House and Senate, Council of State and seats on North Carolina’s courts.
During Governor-elect Perdue’s campaign, she emphasized the importance of investing in education, transportation infrastructure and other pillars of economic development: “Beyond developing new and existing economic sectors, we must also ensure that businesses continue to relocate to North Carolina if we are to grow economically. For this to happen, the business community must continue to view our state as having a high quality of life, fair taxation, a qualified workforce and reasonable operating costs.” (NC Magazine, September 2008)
There is much work to be done in North Carolina in the coming year, as our state faces significant budget challenges, job losses and other effects of a national economic crisis. Our state Chamber and its employer members look forward to working with Governor-Elect Perdue to jump-start North Carolina’s economy and shape a prosperous future for all North Carolinians.
Tax Experts Offer Insight Following 2008 Elections
As new administrations prepare to take office in Washington, DC and Raleigh, tax policies in North Carolina and the nation as a whole are in question. During this time of transition and economic uncertainty for all North Carolina businesses, the North Carolina Chamber held its 1st Annual Tax Conference in Charlotte on November 13th. “These are extraordinary times,” said Patrick Heck, a partner at K&L Gates, during his presentation at the conference. “Change is definitely going to happen to the Internal Revenue Code . . . Every American, every business, every charitable organization has an interest in the outcome of that debate.”
Our Chamber’s 2008 Tax Conference hosted state and national tax experts to offer insight as to what changes are anticipated in both Washington, DC and North Carolina. Some of the presentations included the following:
- Upcoming Federal Tax Policy Debate
Patrick Heck of K&L Gates kicked off the North Carolina Chamber’s 2008 Tax Conference with an overview of what is expected to happen to national tax policies under the new administration of President-elect Barack Obama. Heck noted that over the next 12 months, the new Obama administration and Congress will undertake the most significant tax debate in a generation, as more than $4 trillion in tax decisions will be on the table, affecting every American and every business. Heck mentioned that some of the key issues that will likely be debated include individual tax rates, capital gains/dividend taxes, the estate tax, taxes on corporations, executive compensation, “loophole closers” to eliminate special tax credits, and international taxes. Heck made clear that it is imperative for all businesses to keep a keen eye on potential tax changes and to start assessing risks and opportunities now.
- NC Tax Experts Discuss Economy & State Budget
Change is also in the air on the state level. Barry Boardman, chief economist with the NC General Assembly Fiscal Research Division, gave conference attendees his outlook on North Carolina’s economy for the rest of the fiscal year. While the news wasn’t bright – Boardman predicted that the state will see a revenue shortfall of between $800 million and $1.6 billion – he noted that North Carolina has fared better than many other states in some areas, including real estate. Still, the outlook isn’t positive going forward, he said: “Looking ahead at 2009-2010, I’m not seeing robust recovery.”
Robert Cline of Ernst & Young, who is directing our Chamber’s Tax Policy Project, presented results from the first phase of the project: benchmarking. In the first phase, E&Y developed a set of business tax principles, provided a comprehensive look at what taxes businesses currently pay in North Carolina, conducted a competitive analysis of business taxes paid here versus six competitor states, and studied changes in corporate tax structure in Texas, Michigan and Ohio. Cline stressed the importance of business involvement in any policy debate that may occur about how best to modernize North Carolina’s tax system. “There’s no simple answer to what is the best state and local tax system for North Carolina,” said Cline, “but competitiveness and economic development are concerns at the top of the list.”
If you were unable to attend the North Carolina Chamber’s 1st Annual Tax Conference but are interested in learning more about the presentations that were given, click here.
Don’t Miss the 2009 Economic Forecast Forum!
You don’t want to miss the 2009 Economic Forecast Forum, presented by Progress Energy and hosted by our state Chamber and the North Carolina Bankers Association. The event is co-sponsored by Blue Cross and Blue Shield of North Carolina, GlaxoSmithKline and S&A Cherokee and will be held on January 5th at the new Raleigh Convention Center.
At this year’s noon event, featured speakers will be:
*Bill Johnson, Chairman, President and CEO of Progress Energy
*Tom Donohue, President and CEO of the US Chamber of Commerce, and
*Dr. Harry Davis, Professor of Banking at Appalachian State University and NCBA Economist
Additionally, a preliminary Special Session at this year’s Forum will center on “Transportation’s Necessary Transformation for the Future.” Brad Wilson, Chairman of the 21st Century Transportation Committee, will lead a discussion about how North Carolina can best address its transportation infrastructure challenges to sustain economic growth and job creation to generate revenue for the future. The Special Session will begin at 10 a.m. and is included in Forum registration. As in the past, the Forum will be a luncheon event.
Register for what may be the most important event of the year online now at the NC Bankers Association Web site at www.ncbankers.org or click on the following link: http://www.ncbankers.org/?content=article_display&id=17
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