Plain English Summary
This bill creates a new 7% income tax on North Carolina income exceeding $1 million per year for individuals. The revenue collected, minus administrative costs, would be distributed annually to the state public school fund and allocated to local school districts based on the number of students.
Arguments in Favor
Supporters argue this bill provides dedicated funding for public schools without raising taxes on middle and working-class families. They contend that high earners have greater capacity to contribute and that increased school funding can improve educational quality, teacher salaries, and student outcomes. Proponents view it as a progressive tax approach that asks higher-income individuals to pay a larger share.
Arguments Against
Opponents argue this tax could discourage high earners from living or working in North Carolina, potentially reducing overall tax revenue and economic growth. Critics also contend that targeted income taxes create complexity in the tax code and may be challenged constitutionally. Some argue that education funding challenges require broader solutions beyond additional taxes on any single income group.
AI-generated analysis based on bill text. Always verify with official sources at ncleg.gov. This is not legal or political advice.
Sponsors
Primary Sponsor
Representative · District 115
Primary Sponsor
Representative · District 56
Primary Sponsor
Representative · District 72
Primary Sponsor
Representative · District 27
Cosponsors (27)
Representative · District 39
Representative · District 8
Representative · District 48
Representative · District 21
Representative · District 38
Representative · District 99
Representative · District 45
Representative · District 49
Representative · District 112
Representative · District 71
Representative · District 50
Representative · District 40
Representative · District 30
Representative · District 61
Representative · District 114
Representative · District 100
Representative · District 18
Representative · District 92
Representative · District 66
Representative · District 36
Representative · District 31
Representative · District 60
Representative · District 33
Representative · District 103
Representative · District 32
Representative · District 101
Representative · District 11