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’
A proposed constitutional amendment, if it passes, wouldn’t immediately lower income taxes—but would cap the state income tax at 3.5%.
Republicans in North Carolina have been steadily reducing the state's income taxes for over a decade, with voters set to decide on Tuesday whether to make it even harder for future lawmakers to reverse those cuts. The constitutional amendment before them would lower the maximum allowable income tax rate from 7% to 3.5%, effectively halving the ceiling for state taxes on individuals and corporations.
However, the measure wouldn't lower taxes immediately, as the current rate is already 3.99%. The amendment faces opposition from Gov. Josh Stein, who argues it would not put more money in anyone's pockets and would instead leave the state with fewer options to fund public services during an economic downturn.
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