Income Tax Cap AmendmentConstitutional amendment · Put on the ballot by lawmakers
Cap state income tax at 3.5%
Explain it like I'm 5
This would lower the highest state income-tax rate allowed by the constitution from 7% to 3.5%. The tax rate people pay is already scheduled to fall below 3.5%, so this mainly makes future increases harder, like lowering a ceiling.
Yes vote
The constitutional maximum state income-tax rate would fall from 7% to 3.5%.
No vote
The constitutional maximum would remain 7%.
The question to ask yourself
Is permanently limiting future income-tax increases worth reducing lawmakers' flexibility during future needs?
The case for
- Could protect taxpayers from future income-tax increases above 3.5%.
- Could make the state's tax policy more predictable.
- Supporters say keeping taxes lower can leave more money with families and businesses.
Backed by: Republican Party of North Carolina, Americans for Tax Reform, National Federation of Independent Business
The case against
- It would limit lawmakers' options during emergencies or budget shortfalls.
- Future revenue needs could shift toward sales taxes, fees, or service cuts.
- The amendment would not provide an immediate tax cut because scheduled rates are already below 3.5%.
Opposed by: Democratic Party of North Carolina, League of Women Voters of North Carolina, NC Budget & Tax Center, North Carolina AFL-CIO
- Money
- The amendment does not directly change the current tax rate, and its future revenue effect is not estimated.
- Don't be misled
- Calling it an immediate tax cut is misleading, because current law already schedules the rate below 3.5% and this measure mainly limits later increases.