Compare Bills

Primary Sponsor

Last Action

Ref To Com On Rules, Calendar, and Operations of the House2026-04-29

Vote Breakdown

No floor votes recorded.

Plain Language 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.