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The Republican Party of North Carolina The Republican Party of North Carolina

REDUCE THE MAXIMUM INCOME TAX RATE

Ballot Language

“Constitutional amendment to reduce the income tax rate in North Carolina to a maximum allowable rate of seven percent (7%).”

NCGA Voting Record

House

S.B. 75, Roll Call #1286, Passed 73-45: R 73-1; D 0-44; House, 6/28/18

Senate

S.B. 75, Roll Call #775, Passed 34-13: R 32-2; D 3-11; Senate, 6/28/18

Talking Points

Would lower the state’s maximum possible income tax rate from 10 percent to seven percent.

With this amendment, voters can say no to a return to the days of spendthrift politicians, high taxes and multi-billion dollar deficits by placing this protection in our state constitution.

In 2019 the North Carolina income tax rate will drop to 5.25 percent so even in the case of a recession or emergency, should the $2 billion that Republicans have put into the rainy day fund not be enough, lawmakers would have wiggle room to generate more revenue without having to resort to a sales tax increase.

Prudent budgeting, common-sense restraints on spending and smart savings put North Carolina in a strong position to offer this benefit to taxpayers.

Lowering the tax cap to 7% will not affect North Carolina’s credit rating according to the Office of the State Treasurer.

Smart budgeting is key to maintaining our unanimous AAA bond rating.

Additional Information

Ray Nothstine, “Why Lowering the Cap on the State Income Tax Rate is a Great Idea,” NC Civitas, 6/13/18

“Georgia Income Tax Rate Cap,” Ballotopedia, Accessed 9/5/18

Liz Malm, “Critics Of North Carolina Tax Reform Miss the Point,” Tax Foundation, 5/15/13

 

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