NC lawmakers back income tax cap measure for November ballot: 'States aren't here to make profits'
RALEIGH, N.C. (WTVD) -- The North Carolina House voted to put a constitutional amendment before voters in November that, if approved, would limit the state's personal income tax rate.
The amendment would ask voters whether they support capping the income tax rate so it cannot be raised above 3.5%.
Republicans promoted Senate Bill 1080, citing strong revenues and a need for affordability.
"This amendment will ensure the people's elected representatives take the taxpayer's money and spend the taxpayer's money in a way that taxpayers want - in a controlled, measured way," said Rep. Dean Arp, a Republican from Union County.
The state's current income tax rate is 3.99%, though it is scheduled to drop to 3.49% next year because of a revenue trigger. A proposed budget framework would keep that rate in place for three years before another quarter-point reduction.
Debate on Wednesday focused on the future ability to adjust rates, rather than those specific scheduled changes.
"Constitutions are supposed to protect the ability of a free people to govern themselves. But this amendment desperately tries to permanently lock in one faction's view, regardless of what the future holds, regardless of what emergencies are people may face, when none of us work here anymore," said Rep. Phil Rubin, a Democrat from Wake County.
In 2018, voters approved a constitutional amendment that capped the income tax rate at 7%. The new proposal would cut that cap in half.
ALSO SEE | NC House advances veto override of educational choice act
"Sure, it's great to lower taxes. But you're also going to stop services, you're going to slow services down. You're going to squeeze people dry," said Rep. Marcia Morey, a Democrat from Durham.
Republicans pushed back on that argument, saying funding for state agencies has increased year over year.
"Ladies and gentlemen, states aren't here to make profits. They're here to provide services. We don't lose money when we reduce people's taxes. We allow them to keep what they have justly earned," said Rep. Keith Kidwell, a Republican from Beaufort County.
The State Senate voted to pass the measure on Tuesday.
Wednesday's vote was along party lines, with unaffiliated Representatives Carla Cunningham and Nasif Majeed, both of Mecklenburg County, joining Republicans to reach the required three-fifths majority needed. Both representatives had been Democrats before leaving the party at the start of the short session.
"For years we've seen some municipal and county governments impose exorbitant tax rates on their residents with little to no regard for fiscal restraint," Sen. Tim Moffitt, R-Henderson, said. "At the General Assembly, we work hard to keep our spending in check so you can keep more of your hard-earned paycheck. Your local government should do the same. These property tax measures establish some commonsense safeguards to protect the taxpayers."
