North Carolina
State Tax Action in 2025: Amid Uncertainty, Tax Cuts and New Revenue
• By Aidan Davis, Neva Butkus, Marco Guzman
Federal policy choices on tariffs, taxes, and spending cuts will be deeply felt by all states, which will have less money available to fund key priorities. This year some states raised revenue to ensure that their coffers were well-funded, some proceeded with warranted caution, and many others passed large regressive tax cuts that pile on to the massive tax cuts the wealthiest just received under the federal megabill.
Sales Tax Holidays Miss the Mark When it Comes to Effective Sales Tax Reform
• By Miles Trinidad
Sales tax holidays are often marketed as relief for everyday families, but they do little to address the deeper inequities of regressive sales taxes. In 2025, 18 states offer these holidays at a collective cost of $1.3 billion.
How Much Would Every Family in Every State Get if the Megabill’s Tax Cuts Given to the Rich Had Instead Been Evenly Divided?
• By Michael Ettlinger
If instead of giving $117 billion to the richest 1 percent, that money had been evenly divided among all Americans, we'd each get $343 - or nearly $1,400 for a family of four.
NC Newsline: NC Lawmakers Urged to Act as Federal Cuts Threaten State Services
July 10, 2025
A coalition of policy experts and wealthy advocates warned North Carolina lawmakers that recent federal budget cuts could devastate state services, urging action to protect health care, food assistance and other public programs.
Analysis of Tax Provisions in the Trump Megabill as Signed into Law: National and State Level Estimates
• By Steve Wamhoff, Carl Davis, Joe Hughes, Jessica Vela
President Trump has signed into law the tax and spending “megabill” that largely favors the richest taxpayers and provides working-class Americans with relatively small tax cuts that will in many cases be more than offset by Trump's tariffs.
Trump Megabill Will Give $117 Billion in Tax Cuts to the Top 1% in 2026. How Much In Your State?
• By Michael Ettlinger
The predominant feature of the tax and spending bill working its way through Congress is a massive tax cut for the richest 1 percent — a $114 billion benefit to the wealthiest people in the country in 2026 alone.
How Much Do the Top 1% in Each State Get from the Trump Megabill?
• By Carl Davis
The Senate tax bill under debate right now would bring very large tax cuts to very high-income people. In total, the richest 1 percent would receive $114 billion in tax cuts next year alone. That would amount to nearly $61,000 for each of these affluent households.
With Fiscal Uncertainty Looming, Louisiana Senate Did the Right Thing on Tax Bills
• By Neva Butkus
If you find yourself in a hole, stop digging. This is exactly what Louisiana Senators did when they rejected two tax-cut bills that would have created a billion-dollar shortfall in the coming fiscal years.
NC Budget & Tax Center: It’s Time for a Millionaire’s Tax in North Carolina
• By ITEP Staff
According to the Institute on Taxation and Economic Policy, this NC Senate proposal alone would deliver an additional average annual tax cut of $64,700 to millionaires in North Carolina, on top of their federal tax cuts and more than a decade of state cuts. This is more than 52 times the average amount received by non-millionaires, who would see roughly $1,200.
State Rundown 6/11: States in The Eye of a Fiscal Hurricane?
• By ITEP Staff
State legislatures are enjoying a relatively quiet period right now, though it is merely a temporary calm before the storm of the federal tax and budget debate begins raging again.
North Carolina Tax Proposal Prioritizes Millionaires Over Everyone Else
• By Dylan Grundman O'Neill, Miles Trinidad
North Carolina Senators are proposing to yet again ignore the core needs of the majority of North Carolinians in favor of more income tax cuts for the wealthy few. The Senate's budget would take the personal income tax rate to 1.99 percent as soon as 2031 if certain revenue triggers are met, once again delivering billions of dollars in tax cuts mostly to the rich. And the cost of those tax cuts for North Carolina…
State Rundown 6/5: States Wrap Sessions, Some Prepare for Fiscal Uncertainty
• By ITEP Staff
States use the final hours of their legislative sessions to address deficits and preserve revenue in preparation for the times ahead.
Analysis of Tax Provisions in the House Reconciliation Bill: National and State Level Estimates
• By Carl Davis, Jessica Vela, Joe Hughes, Steve Wamhoff
The poorest fifth of Americans would receive 1 percent of the House reconciliation bill's net tax cuts in 2026 while the richest fifth of Americans would receive two-thirds of the tax cuts. The richest 5 percent alone would receive a little less than half of the net tax cuts that year.
State Rundown 5/21: Big and Not-So Beautiful Tax Cut Bills Abound in States
• By ITEP Staff
As a sprawling, regressive tax bill continues to take shape at the federal level, many states are moving forward with major tax cut proposals of their own.
North Carolina Budget & Tax Center: The Economic and Fiscal Impacts of Mass Deportation: What’s At Risk in North Carolina.
• By ITEP Staff
In 2022, people who are undocumented paid $692 million in North Carolina state and local taxes.[ii] If ten percent of people who are undocumented are deported it would result in a loss of $69 million per year in state and local tax revenues.
Trump 2025 Tax Law: Research and Resources
• By ITEP Staff
Want to know more about the tax and spending megabill that President Trump recently signed into law? We've got you covered.
State Rundown 4/24: States Push Tax Cuts Despite Fiscal Uncertainty
• By ITEP Staff
While some states are preparing for uncertainty – slowing revenue growth, chaos from unpredictable tariffs, cuts to federal programs, etc. – others continue to move forward with plans for deep tax cuts. For instance, Georgia Gov. Brian Kemp signed legislation accelerating the cut to the personal income tax rate, which is currently phasing down. […]
North Carolina Budget & Tax Center: Faced with pausing tax cuts for the rich or lowering state spending, NC Senate budget sides with the wealthy few
• By ITEP Staff
They will risk recurring budget deficits. They will risk an inability to protect North Carolinians from federal Medicaid and food assistance cuts. To deliver these tax cuts, they will cut funding for the state’s public K-12 students and community college students.
State Rundown 4/16: No Vacation from Spring Tax Breaks as Bills Advance
• By ITEP Staff
While students and families are enjoying spring break vacations, legislative sessions are still in full swing. And some are poised for a spring tax break season as proposals advance with major implications for the sustainability of state budgets.
IRS Cooperation with ICE Will Damage Public Trust, Putting Tax Revenues in Jeopardy
• By Marco Guzman
Attempts by the Department of Homeland Security to secure private information from the IRS on people who file taxes with an Individual Taxpayer Identification Number is a violation of federal privacy laws that protect taxpayers. It is also a change that could seriously damage public trust in the IRS, which could jeopardize billions of dollars in tax payments by hardworking immigrant families.
Celebrating 50 Years of the Earned Income Tax Credit
• By Neva Butkus
This week, we celebrate 50 years of the federal Earned Income Tax Credit (EITC) and the impact it's had on millions of workers and families. In 2023 alone, the latest year of available data, the federal EITC alongside the refundable portion of the Child Tax Credit lifted 6.4 million people and 3.4 million children out of poverty.
State Rundown 3/20: It’s March, Welcome to Tax Policy Madness
• By ITEP Staff
March Madness kicks off today and the pressure is on as many states’ legislative sessions are nearing the final buzzer. Some state lawmakers are seemingly competing for the title of most regressive state tax policies while others are looking to lift up best practices for more equitable outcomes. The Mississippi legislature landed on a […]
State Rundown 2/20: Tools to Address Corporate Tax Avoidance and Property Tax Affordability
• By ITEP Staff
A new ITEP report finds that states could raise $19 billion a year with one policy change targeting corporate tax avoidance. That policy, worldwide combined reporting, strengthens state corporate taxation by giving states a full view of multinational corporate profits, essentially eliminating the tax savings that companies currently see by pretending their profits were earned in Switzerland, the Cayman Islands, and other international tax havens.
Turning IRS Agents to Deportation Will Reduce Public Revenues
• By Carl Davis, Jon Whiten
The Trump Administration’s plan to turn IRS agents into deportation agents will result in lower tax collections in addition to the harm done to the families and communities directly affected by deportations.
State Rundown 2/6: Tax Proposals in the Spotlight
• By ITEP Staff
Tax changes have been proposed or are nearing the finish line in many states. Kentucky is poised to enact an income tax cut as a bill heads to the governor’s desk. In Pennsylvania, Gov. Josh Shapiro’s budget proposal called to accelerate existing corporate tax cuts while closing corporate tax loopholes by enacting combined reporting. Ohio Gov. Mike DeWine proposed a new credit for children of working parents. And Virginia Democrats countered Gov. Glenn Youngkin’s proposed…
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