Republicans pitch 3.5% income tax cap as an affordability fix in North Carolina—but Gov. Josh Stein says it won’t put ‘more money in anyone’s pockets’

Republican lawmakers in North Carolina have steadily reduced the state’s income taxes for more than a decade. But despite the legislation’s name, “ Lower Taxes for All NC ,” the amendment wouldn’t actually lower state taxes immediately. Under legislation that has already passed, it is scheduled to fall to 3.49% in 2027 . If approved, raising income taxes above 3.5% would require another constitutional amendment, which requires the approval of three-fifths of both chambers of the state legislature and then a majority of voters. For years, Republicans in the legislature have held enough seats to enact their legislation even without the support of the two consecutive Democratic governors who have held the executive position since 2017. To get on the ballot, the measure has already passed the Republican-controlled state Senate and House. In Texas, polls show former Republican attorney general Ken Paxton slightly behind Democrat James Talarico in a Senate race that faces long odds given no Democrat has won statewide office in Texas since 1994. Abdul El-Sayed holds a double digit lead over Republican opponent Mike Rogers in another closely watched Senate contest. Still, Republicans have tried to alleviate voters’ concerns about affordability at the national level, where GOP members control both chambers of Congress. Republicans earlier this year helped push through the 21st Century Road to Housing Act, a piece of bipartisan legislation aimed at tackling high housing costs including by accelerating homebuilding and reforming zoning.