Don’t Make Tax Giveaways to the Powerful Permanent

 

The North Carolina General Assembly has proposed a Constitutional amendment that would seriously limit our state's ability to build thriving communities. 

SB 75 would change the state constitution to permanently freeze income tax rates in North Carolina. In order to keep funding vital public services, lawmakers will likely raise sales or property taxes, which will eat into middle class families’ paychecks and financially strand those who are struggling to get by.

This constitutional amendment is essentially a giveaway to millionaires that will just keep in place the heavy tax load carried by middle- and working-class families. The income tax cuts the policymakers have passed since 2013 gave the wealthy the biggest breaks, at the expense of the rest of the state. Now that they are fully phased in as of January 1, those income tax cuts will reduce annual revenue by $2 billion.

Under this constitutional amendment scheme, lawmakers would continue to underfund schools, roads, public health and parks.  They would also likely have to:

  • Push greater responsibility to local governments for funding public schools and teachers, or raising property taxes
  • Raise the sales tax to offset the lost revenue
  • Eliminate income tax deductions that working-class , middle-class and fixed income North Carolina families currently receive

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