Dear Governor McCrory, Governor-elect Cooper, and Members of the Assembly:
We are upper-income North Carolinians who treasure the quality of life in our state, and want to play our part in making sure all our communities have the financial resources they need to thrive.
We believe the best way for us to be part of the solution to North Carolina’s fiscal challenges – and the challenges faced by our fellow North Carolinians – is to use the state income tax to raise revenue from upper-income households and corporations in a progressive and permanent way to meet the long-term needs of our state as it rebuilds.
In light of the upcoming Special Session to consider how the State will rebuild Eastern North Carolina in the aftermath of Hurricane Matthew, we believe it would be irresponsible for the State to cut the corporate tax rate from 4% to 3% at this time.
We call on the Governor and the North Carolina General Assembly to stop the rate reduction for profitable corporations, scheduled to go into effect on January 1, which would cost the state $500 million per year at a time when that revenue is greatly needed. We need these funds to ensure that Eastern North Carolina rebuilds vibrant main streets, affordable and safe housing, and modern infrastructure that will withstand future natural disasters.
We are also concerned about the long-term fiscal health of our State, and the need to invest in North Carolina’s future, particularly our top-notch public schools and universities. We call on the Governor and General Assembly to enact a new surtax of 2% on earnings over $200,000 for taxpayers married filing jointly (or taxpayers filing individually with incomes over $100,000). This means taxpayers like us, the undersigned.
We are willing and able to pay more taxes. Raising the top marginal rate by 2% in this way would not affect our individual choices or quality of life, but would result in $692 million in new annual revenue that could be dedicated to investing in education, rebuilding communities (including Eastern North Carolina), creating vital transportation solutions, and supporting a North Carolina that works for us all. We know that building resilient communities requires us all to come together to do what each of us can, and we are prepared to do our part to share in the solution by paying state income tax at a higher marginal rate.