Statement from Alexandra Sirota, Director of the NC Budget & Tax Center:
The Governor understands that you can’t both cut taxes and invest in children’s education, pay teachers competitively, or build thriving communities. The move to freeze the corporate income tax rate at an already low 3 percent and the income tax rate at 5.499 percent on incomes over $200,000—those in the top 5 percent of taxpayers—is a first and prudent step to shifting away from an approach that has failed North Carolinians.
For years, the NC General Assembly has prioritized tax cuts for profitable corporations and wealthy taxpayers, making tax choices that failed to deliver benefits to rural communities, working people, children and seniors, in particular.
The Governor’s budget stands in contrast, taking a fiscally responsible approach that seeks to build a thriving North Carolina for everyone. It is a recognition of our historical commitment to the public good, and it should be a signal to the General Assembly to undo their harmful tax cuts that undermine North Carolina’s future.