SEANC’s Executive Committee voted last week to oppose two tax amendments on this year’s ballot. One would cap the state income tax rate at 3.5% in the North Carolina Constitution. The income tax is the largest source of money in the state budget, and the state budget is where raises and COLAs come from. The other, Amendment 3, would limit local property taxes, pushing more costs onto the state budget.

This week on The SEANC View, former Republican Rep. Paul “Skip” Stam and former Democratic Sen. Graig Meyer explain why they oppose the income tax amendment.

Stam, a longtime supporter of lower income taxes, called the cap “a very risky bet,” since the state has no experience at that rate. “We cannot fund the state government at 3.5%,” he said.

Meyer said state employees might see a lower income tax rate and think it’s a good deal, but “this is likely going to be incredibly unfair to you.” Workers would pay higher taxes on just about everything else, while the wealthiest North Carolinians would see their tax bills limited. He also warned that vacancies in prisons and at DHHS would persist and that the employer contribution for retiree benefits would likely be among the first things cut.

Both warned that lawmakers would turn to sales taxes, fees and other less fair ways to raise money. They also said a permanent cap could threaten the state’s AAA bond rating and its ability to respond to disasters like Helene.

If these amendments pass, don’t count on raises or COLAs. Don’t skip the amendments. They appear near the end of your ballot, after the candidate races.