Republicans pitch 3.5% income tax cap as an affordability fix in North Carolina—but Gov. Josh Stein says it won’t put ‘more money in anyone’s pockets’
Source: Fortune ·
A proposed constitutional amendment, if it passes, wouldn’t immediately lower income taxes—but would cap the state income tax at 3.5%.
From the source
Republican lawmakers in North Carolina have steadily reduced the state’s income taxes for more than a decade. On Tuesday, voters will decide whether to make it harder for future lawmakers to reverse those cuts as affordability emerges as one of the biggest issues of the midterms. North Carolina voters are considering a constitutional amendment that would lower the maximum allowable income tax rate from 7% to 3.5%. This would halve the ceiling for what the state government can charge individuals and corporations through income taxes. But despite the legislation’s name, “Lower Taxes for All NC,” the amendment wouldn’t actually lower state taxes immediately. North Carolina’s individual income tax rate currently stands at 3.99%. Under legislation that has already passed, it is scheduled to fall to 3.49% in 2027. The rate is set to drop further to 3.24% in 2030 and 2.99% in 2033. The measure facing voters Tuesday deals with the future. If approved, raising income taxes above 3.5% would…
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