On Nov. 6, 2018, voters will be asked to lock in recent income tax cuts that have primarily benefited the wealthy and limit our state's ability to build thriving communities. 
 
The ballot measure would set in the state Constitution a cap on income tax rates at 7 percent, below the historic levels on higher income taxpayers and those needed to fund public schools and communities and address the losses in a downturn.
 
It is critical that this measure is stopped by voters. 

Sign the Petition to Stop the Amendment!

Here are just some of the ways in which a Constitutional change will hurt North Carolina’s future and you:
  • Future lawmakers will have fewer tools to meet the needs of a growing state.  They 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.
  • Lawmakers will continue to underfund schools, roads, public health and parks. Already the state has had 10 years of decline in the state’s commitment to public goods.
  • Greater responsibility will be pushed to local governments for funding public schools and teachers, or raising property taxes
  • Many income tax deductions that working-class, middle-class and fixed income North Carolina families currently receive could be eliminated. 
  • North Carolina will also have fewer tools to address federal funding uncertainty. 

Download the Fact Sheet about this Income Tax Cap Amendment. (pdf)

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.

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

In addition, there’s a lot of uncertainty when it comes to the federal funding that North Carolina receives, and we can’t predict the future. North Carolina’s population and needs may continue to grow, and the next Hurricane Matthew could happen at any time. That’s why it doesn’t make sense to make a permanent change to our state Constitution that will take an important tool away from lawmakers who may need it in the future. 

BTC Report: Income tax rate cap amendment is costly for taxpayers, communities

Limiting the income tax rate permanently could hurt N.C.'s ability to meet its needs while benefiting the top 1 percent.

By Alexandra Sirota, BTC Director

September 2018

Download the full report.

Imposing an arbitrary income tax cap in the North Carolina Constitution could fundamentally compromise our state’s ability to fund our schools, roads, and public health, as well as raise the cost of borrowing. This could all happen even as the tax load shifts even further onto middle- and low-income taxpayers and the state’s highest income taxpayers — the top 1 percent — continue to benefit from recent tax changes since 2013.

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Here are some materials we developed during the legislative session about SB75. 

SB75 would threaten N.C.'s future. (Read the factsheet)

Here are some more reasons why: 

Reason #1: It would put our children's education at risk. Learn more

Reason #2: It would threaten our state's bond rating. Learn more

Reason #3: It could force property and state taxes to increase. Learn more

Reason #4: It could hurt homegrown small businesses. Learn more

Reason #5: It would hit women particularly hard. Learn more

Reason #6: It would undermine equity. Learn more

Reason #7: It would put the health and well-being of North Carolinians at risk. Learn more

Reason #8: It would make N.C. ill-prepared to care for our elders. Learn more

Reason #9: It would threaten our state's natural resources and quality of life. Learn more

Reason #10: It would threaten our democracy. Learn more