Limit State Resources from Income Tax

Ballot Language

Reduce the income tax rate in North Carolina to a maximum allowable rate of seven percent (7%).

For

Against

What it Does

Shifts tax burden to local counties, potentially increasing sales and property taxes to respond to urgent needs.

This amendment limits our state’s resources to respond to emergencies, natural disasters, and significant infrastructure and education needs by capping the income tax at 7%, and could cause property and sales taxes to increase to make up any difference needed.

The misleading summary claiming to reduce the income tax rate makes it seem as if it would reduce your taxes, but it won’t. The constitutional cap on state income tax has been 10% since 1936. Lowering it to 7% is a radical move that has not been debated or analyzed, and places far more burden on lower and middle income individuals (when sales and property taxes may be forced up), as well as local and county governments.

Further, it inhibits the state from raising taxes for necessary spending when federal funding dries up.

For more details, please read Senate Bill 75

Issues with this Amendment

The NC Justice Center's Budget and Tax Center outlines how this proposal would threaten NC's future.
  • 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

Developed by StrongerNC, Inc., a 501c4 grassroots organization comprised of North Carolinians who care about the future of our state and the fundamental rules of democracy. We are not affiliated with any party or candidate.