Gov. Bev Perdue's budget proposal includes key provisions that continue her focus on creating jobs and getting North Carolina's economy moving.
The budget plan, which cuts $3.2 billion in state spending, includes tax relief for corporations and small business and continues investments in education that give North Carolina a strong and globally competitive workforce.
“This budget stands up to our economic challenges and equips us for the future by resetting how we grow jobs, educate our children and operate state government,” Perdue said. “The cuts are deep, and some are painful. But through careful management of our resources we can also make investments in our core priorities.
The spending plan boosts the Governor’s top priority of creating jobs by providing $500 million in tax relief for corporations and small businesses, creating an estimated 10,000 jobs over the next three years. The budget will lower the corporate income tax rate from 6.9 percent to 4.9 percent – the lowest in the southeast and third lowest in the nation. It also provides an unemployment insurance tax credit that covers 75 percent of the state’s businesses.
The JobsNow highlights of Gov. Perdue's budget include:
-- Reduces tax burdens for corporations and small businesses by almost $500 million.
-- Lowers corporate income tax rate from 6.9 percent to 4.9 percent (equates to $418 million savings), making it the lowest in the Southeast and third lowest in the country.
-- Provides $65 million unemployment insurance tax credit to 135,000 small businesses that employ over 650,000 people throughout North Carolina.
-- Invests $75 million to put North Carolina construction and repair companies back to work.
-- Total package will help to create an estimated 10,000 jobs over the next three years.
-- Supports Capital Access Program that uses $46 million in federal Treasury funds to leverage some $800 million in loans available to North Carolina small businesses.
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