NC Budget and Tax Center

House Finance Committee considering bill to amend state constitution tonight

UPDATE:  House Finance was cancelled last night.  Stay tuned.

In another last-minute consideration of a major policy change, the House will take up a bill (Senate Bill 75) this evening (15 minutes after session ends) that would amend the state Constitution to permanently cap income tax rates at 5.5 percent. Lawmakers have already proven that they can cut income taxes without changing the state Constitution — they have been doing it since 2013.

Having the maximum rate for income taxes set in the state Constitution limits the tools future policymakers will have to meet the needs of a growing state; to make up the funding difference from the likely federal cost shift that is proposed on Medicaid, food assistance and other key services; or to address unexpected natural disasters or major economic disruptions.

This constitutional amendment locks in the tax giveaways for millionaires since 2013 and will likely just shift the tax load even more onto middle- and working-class families.

Here is more information about the proposed change to the Constitution.

Audio of the House Finance Committee meeting may be available here.

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