North Carolina’s latest revenue forecast projects $2.6 billion more than budgeted, fueling debate over tax cuts, spending, and fiscal caution.
A Pioneer Institute research brief finds that North Carolina's decade of tax reforms — including a flat income tax and corporate tax phase-out — has outpaced Massachusetts in job creation and business formation, even as the Bay State's high-tax model has driven an exodus of residents and employers.
North Carolina taxpayers will face a significant shift in the tax landscape for 2026, including a reduced state income tax rate and new deductions in the federal "One Big Beautiful Bill." The IRS recently updated its withholding tool to reflect the federal changes.
While still ranking as a top state for business and tax competitiveness, NC risks falling behind other states if it stands still.
The Fair Tax Act is currently in Congress, with 14 House sponsors (including Rep. Mark Harris of North Carolina) and the endorsement of over 80 economists.
A bipartisan three-judge panel has upheld North Carolina’s 2018 state constitutional amendments guaranteeing photo identification for voters and lowering the state’s cap on income tax rates. It’s a case that prompted Carolina Journal’s “Extreme Injustice” podcast.
Across-the-board tariffs and the uncertainty they create undermine that stability, making it harder for state budget writers to project revenues and plan responsibly.
North Carolina Senate Republicans released their proposed $66 billion biennial budget Monday evening, outlining major funding priorities for the 2025–27 fiscal cycle. Key provisions in the 439-page proposal include pay raises for public employees, hurricane recovery investments, tax cuts, and other policy changes.
Legislative leaders haven’t spent the past 15 years skillfully piloting North Carolina’s ship of state by closing their eyes and hoping for the best.
In Washington, their lack of income tax aligns with a broader cultural ethos of cultivating innovation and entrepreneurship, which resonates across party lines.
State and local taxes across the country consume an average of 11.2% of income. North Carolina’s combined tax burden is 9.9%
