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North Carolina Cut Taxes Like the GOP Plans to Nationwide. Here's What Happened.

For a peek into a world after a massive tax cut, visit North Carolina and ride along with factory owner Eric Henry.

For a peek into a world after a massive tax cut, visit North Carolina and ride along with factory owner Eric Henry.

Conservative groups have hailed North Carolina as a model of a tax overhaul since it began slashing state corporate and individual tax rates four years ago. And one of the effort’s main architects, Thom Tillis, is now in the U.S. Senate, where early Saturday he joined 50 other Republican senators in voting for a $1.5 trillion federal tax overhaul — a plan that employs many of the same tactics already in use here.

But as Henry drove through the conservative, rural county he’s called home all his life, he had trouble seeing many benefits of the tax cut. Business was good, but it wasn’t good enough that he could give his 20 workers significant raises.

And there were growing worries that the lost tax revenue — estimated at $3.5 billion this year alone — was beginning to significantly hurt core public services such as schools.

Caroline Cournoyer is GOVERNING's senior web editor.
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