Gov. Pat McCrory and other Republican leaders are trying to change state taxes by proposing to lower the state’s corporate and individual income tax rates.

According to the News & Observer, past governors and other leaders have tried to reform taxes, but have been unsuccessful due to opposition from groups claiming that lower corporate taxes will only detriment the poor and help out the rich of the state.

However, GOP leaders such as Representative Tom Murry (R-Wake), primary sponsor of House Bill 642, want to change the tax code.

Since North Carolina has a higher corporate tax rate than other states in the South, the bill aims to make more businesses chose North Carolina over states like Georgia, South Carolina and Tennessee when deciding to relocate or establish a new company location.

The bill aims to make North Carolina corporation friendly by proposing that the state should lower their state corporate tax rate from 6.9 percent to 4.9 percent.

Universities and other government-funded organizations may feel the impact from government funding if certain taxes are lowered, since taxes are one of the main ways governments generate revenue.

Leaders may have to seek alternatives for raising revenue, like raising other current taxes (sales tax, for example) on different products across the state.

Gov. McCrory and other Republican leaders have not reached an agreement on how much they want to reduce some of North Carolina’s tax rates by, but some leaders have claimed that they want to see the individual and corporate taxes completely removed.

According to the Tax Foundation, North Carolina’s corporate tax rate currently ranks 24th lowest among states levying corporate income taxes.

The top rate for individual income tax in North Carolina is at 7.75 percent, which ranks 10th highest among states levying an individual income tax.