North Carolina has been moving in the right direction on tax reform since 2013. At that time, the legislature implemented sweeping reforms that switched from a steeply progressive rate structure to a low, single-rate, flat tax. It also reduced the corporate income tax, ameliorating the burden of a tax that is borne by workers, consumers, and shareholders. North Carolina has come a long way since it had a tax code that gave promised the highest personal and corporate tax rates in the region. It was a system that attempted to centrally manipulate business investment and consumer choices with special breaks for businesses and industries that gained favor in the eyes of politicians. The state now has the opportunity to continue down the road that was paved by the 2013 tax reform legislation. An important first step would be to begin a process that would lead to the ultimate elimination of capital gains from the tax base and the penalty on entrepreneurship and economic growth that our tax code currently imposes.