North Carolina Governor Roy Cooper last week vetoed legislation that would have cut the tax rate on franchises in North Carolina. Protesting that the bill “prioritizes corporate tax cuts over investments in education . . .”, Governor Cooper vetoed S.B.578 which cut business franchise taxes at the same time that he signed a different tax cut bill that benefitted individual taxpayers. The bills were both part of a budget proposal considered earlier in the year, but that proposal was also vetoed by the Governor. In response, the republican legislative majority split the tax cuts into two distinct bills – the tax cut for individual taxpayers and a reduction in the franchise tax for businesses. Governor Cooper, a Democrat, vetoed the business tax cut, but offered to negotiate further and tied the issue to increased teacher pay.