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Kozi Checks & Balances TaxTactics News

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January 21.2026

2 Minutes Read

Why North Carolina Does Not Need Higher Local Taxes for Growth

Aerial view of Asheville at sunset with North Carolina skyline.

Why North Carolina's Local Tax Structure is Sufficient

In recent years, North Carolina has demonstrated a remarkable economic growth trajectory, leading to a significant rise in local tax revenues without needing to impose additional taxes on its citizens. Thanks to careful tax reforms implemented since 2013, local governments have benefited from a robust increase in their revenues, primarily driven by sales taxes, property taxes, and a broader tax base that continues to grow at a rate surpassing inflation and population growth.

Understanding the Growth in Local Revenues

Local spending in North Carolina has surged, fueled by a thriving economy marked by a steady population increase from about 9.9 million in 2013 to nearly 11 million in 2023. This influx is primarily due to the state's attractive business environment, particularly in evolving sectors such as tech, healthcare, and financial services. In this context, there is no pressing need for local governments to raise taxes when they are already capitalizing on expanding sales, property, and income from existing tax structures.

The Misconception of the Need for Higher Taxes

Some policymakers may argue that higher taxes are necessary to cover increased local expenditures. However, this perspective overlooks the reality that local governments are already generating adequate revenue through existing frameworks. Recent reports indicate that local-source revenue has grown significantly faster than both population and inflation combined since fiscal year 2013. This suggests that North Carolina's local tax authority is not only sufficient but thriving under current conditions.

Future Implications of Maintaining Current Tax Levels

Keeping tax rates stable could lead to further economic growth, as lower taxes enhance the overall business climate, encouraging more entrepreneurs and families to settle in North Carolina. Future predictions suggest that maintaining the current tax structure could continue to support this favorable trend, ultimately benefiting the community and its residents.

A Local Perspective on Fiscal Responsibility

For residents, understanding the fiscal health of their local government is crucial. A balanced approach to taxation can lead to better-funded public services without overburdening taxpayers. Since North Carolina has already established a commendable financial footing, the focus should be on optimizing current resources rather than increasing tax burdens.

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Why North Carolina Does Not Need Higher Local Taxes for Growth

Why North Carolina's Local Tax Structure is Sufficient

Understanding the Growth in Local Revenues

The Misconception of the Need for Higher Taxes

Future Implications of Maintaining Current Tax Levels

A Local Perspective on Fiscal Responsibility

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