Statement on federal tax cuts and the impact on North Carolina, from the NC Budget & Tax Center
The U.S. House has passed a huge, ugly bill that slashes health care and food assistance in order to fund $121 billion in tax cuts for the richest 1 percent in 2026 alone. These giveaways come at a steep cost to people across the country and here in North Carolina.
In our state, the richest 1 percent will receive an average annual tax cut of nearly $70,000, while the lowest-paid North Carolinians will see just $80 in tax savings — all while facing higher health care costs and less support to put food on the table.
This isn’t just unjust — it’s dangerous.
NC lawmakers should hit pause on state income tax cuts right now so that they can respond to the cost shifts from the federal government and the greater hardship North Carolinians will face.
Genuine leaders for the good of North Carolina would go beyond that in this moment and ask the richest North Carolinians to pay their fair share — especially with these new federal tax cut windfalls. After all, their federal tax breaks will raise costs for us all.
North Carolina’s future depends on a tax system that works for all, not just the richest few. It’s time to prioritize people over profits and ensure that our federal and state tax dollars build a stronger, more equitable state for everyone.
