Tax bills that moved this week will block progress on affordability for families into the future
With the legislative session in full swing and a bad budget deal announced last week, the legislative proposals that gain approval this session will shape our everyday experiences and future possibilities for our families, neighbors and communities.
We have reviewed the fast-moving tax bills, as well as important tax bills that should move. Today we are releasing some legislative briefs that describe in plain language what these bills do and potential impacts for people, communities and the state overall.
Legislative leaders have chosen to move proposals that further rig the rules of our economy for the wealthy few and profitable corporations — locking in tax breaks of the past decade, limiting local decision-making on property taxes, and putting additional and unnecessary barriers in the way for workers to organize for better jobs and pay.
These bills are Constitutional amendments so cannot be vetoed by the Governor and would still require voter approval if passed.
- Senate Bill 1080, sets an income tax cap at 3.5 percent in the state constitution.
- House Bill 1089, locks in the state constitution property tax limits that harm local services
- Senate Bill 1082, sets the state’s existing right to work law in the state constitution.
The tax bills that aren’t moving tell us as much about legislative leaders’ priorities as the ones that they are focused on. These tax bills would go a long way to making our tax code more fair and more adequate, providing proven solutions to unaffordable property tax bills for households with fixed and low incomes.
- House Bill 1082/Senate Bill 942, creates a refundable Earned Income Tax Credit for working families
- Fair Share for Public Schools Act, creates a 7% personal income tax rate on income over $1 million and directs those funds to public schools across the state through the State Public School Fund
- Kids Over Corporation Act, stops the scheduled elimination of the corporate income tax and instead sets the corporate income tax rate at 5 percent, beginning in Tax Year 2026
- Various property tax relief program reforms
A number of other measures that include tax provisions aren’t getting traction, including notably an end to generous tax breaks for data centers.
The policy process is an opportunity for us to set the rules of our economy to make sure everyone has a chance to get ahead, but what gets heard in committee and sent to the floor too often reflects the interests of a select few rather than the many.
Perhaps if lawmakers regularly assessed how people are doing, as the NC Economic Progress & Well Being Act would do, they would better understand that families are struggling in the economy they have rigged for the wealthy few and profitable corporations.
Until then, it’s so important for us to continue to shine a light on the policy choices being made and weigh in with legislators who get elected to represent us to follow our lead in designing an economy that works for all.
