NC Democrats Propose 7% Tax on Million-Plus Earners for School Funding
Democratic lawmakers propose a 7% tax on million-dollar earners to generate nearly $1 billion annually for North Carolina schools, as the state ranks 46th nationally in teacher pay.
RALEIGH, NORTH CAROLINA — Democratic lawmakers introduced legislation Monday to impose a 7% marginal income tax on North Carolinians earning more than $1 million annually, a measure they say could generate nearly $1 billion each year for public schools.
House Bill 1073 would apply only to income exceeding the $1 million threshold, with all revenue directed to public schools for teacher pay, school repairs, construction, and other K-12 needs. Rep. Allen Buansi (D-Orange) announced the proposal during a Monday morning press conference.
“It’s offensive to me as a parent,” said Buansi about North Carolina’s low national rankings in education funding. “I know it’s offensive to millions of parents across the state.”
State Ranks Near Bottom Nationally
North Carolina currently ranks 46th in the nation for average teacher pay, according to the latest National Education Association report. The state dropped three spots from last year and is the only state in the country where teacher pay is expected to decline this year.
The NEA report also shows North Carolina ranks 46th in per-student funding, highlighting the state’s struggles with education investment. Buansi called the rankings evidence of the need for increased public education funding.
“This is not about broad tax increases,” Buansi said. “It is a targeted adjustment that reflects the reality that those who have benefited the most in our economy can and should contribute more to sustaining it.”
Republican Opposition Expected
The legislation faces an uphill battle in the Republican-led legislature, where cutting taxes rather than raising them has been the majority’s priority for 15 years. NC Newsline reached out to House Speaker Destin Hall and Senate President Pro Tem Phil Berger for comment but did not receive responses by press time.
The proposal comes as lawmakers have yet to pass a full state budget, leaving teacher pay largely unchanged while costs continue to rise. Parents and advocates at Monday’s press conference described schools struggling with staffing shortages, aging buildings, and transportation problems.
Advocates Criticize Current Priorities
Speakers at the press conference also criticized Republican lawmakers for cutting income taxes in recent years while expanding private-school vouchers. Sara Dickinson, a public school advocate, highlighted the financial struggles facing educators.
Dickinson said some teachers at a school that created a food pantry for families have had to rely on it themselves, according to the source material. The anecdote illustrates the financial pressures facing educators in a state where compensation continues to lag behind national averages.
Buansi described the proposed tax as a “targeted, straightforward way to strengthen” public schools. The measure represents Democrats’ latest effort to address education funding challenges in a state where Republican leadership has maintained control of the legislature for over a decade.
The bill’s prospects for advancement remain uncertain given the Republican majority’s historical opposition to tax increases, even those targeted at high earners for education funding purposes.
