The Republican-controlled General Assembly has agreed voters should decide whether North Carolina’s cap on the income tax in the state constitution should be lowered.
The House and Senate voted Thursday to put a proposed constitutional amendment on the November ballot that would lower the maximum individual or corporate rate that can be levied from 10 percent to 7 percent. The Senate had wanted to lower the cap to 5.5 percent, but House Republicans wouldn’t go along.
The current individual income tax rate is a hair under 5.5 percent and the corporate rate is at 3 percent. Republicans contend lowering the cap would instill fiscal discipline by restricting the scope of future tax rate increases. Democrats and allied groups are worried that the lower cap would make it harder for future legislators to close budget shortfalls.
Lawmakers this week have now agreed to submit five amendments to voters this fall.
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