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Primary Sponsor

Last Action

Ch. SL 2026-42026-05-21

Vote Breakdown

Plain Language Summary

This bill proposes a constitutional amendment that would lower North Carolina's maximum income tax rate from 7% to 3.5%. The amendment would be submitted to voters in the November 2026 election, and if approved, would take effect for tax years beginning January 1, 2027.

Arguments in Favor

• •Supporters argue that lowering the income tax cap allows North Carolinians to keep more of their earnings and stimulates economic growth by increasing consumer spending and business investment.
• •They contend that lower taxes make the state more competitive in attracting and retaining workers and businesses compared to higher-tax states.

Arguments Against

• •Opponents worry that significantly reducing the income tax rate would substantially decrease state revenue needed to fund public schools, universities, healthcare, infrastructure, and other essential services.
• •They argue that without corresponding spending cuts or new revenue sources, the state would face difficult choices between reducing services or running budget deficits.