Tax amendment proposal hurts North Carolina's working class
Teachers, seniors and concerned citizens came together to rally against a right-wing proposal to provide a constitutional amendment that amounts to a Millionaire Protection Act. This law would handcuff future legislatures from making needed investments in education, while locking in historically low tax rates for millionaires.
Representatives from Progress NC Action held a news conference in front of stretch limousines in Raleigh Wednesday to express opposition to proposed changes in North Carolina's income tax system.
Republicans say the proposed constitutional amendment to cap the personal income tax at 5.5 percent is another step toward tax overhauls designed to lower income tax rates and place greater reliance on sales taxes.
But opponents are calling it the "Millionaire Protection Act," saying it benefits the "limo class." They say the tax system benefits the rich and hurts the working class.
Treasurer Janet Cowell, a Democrat, wrote that restrictive constitutional limits are viewed as a disadvantage by rating agencies because they limit flexibility of the state to adjust to economic fluctuation.
Deputy Treasurer Greg Gaskins said a constitutional amendment seems unnecessary because the income tax is already scheduled to fall below the proposed cap.