By Wesley W. Stokes

The proposed North Carolina tax-cap amendment may sound like a good idea. After all, everybody wants to pay less in taxes. But we need to look beyond the words “lower taxes” and ask: who really benefits and who could end up paying more?

The amendment would place a 3.5% limit on the state income tax rate in the North Carolina Constitution. This matters because once something is in the Constitution, it is very difficult to change. In the future, North Carolina could face another hurricane, recession, health emergency, or crisis. We will still need funding for our schools, roads, public safety, health services, and communities. A permanent tax cap could give the state fewer options for meeting those needs. The NC Budget & Tax Center stated, "A limit on the income tax rate won’t keep total state and local taxes low. In reality, states with income tax limits or no income tax tend to rely more on sales taxes, property taxes, and fees to fund the programs and services that are necessary to move our communities forward. Reductions in the state income tax rate disproportionately benefit corporations and the wealthy while reducing state revenue available to fund local services."

For a typical working family in Washington County, we're probably talking about tax savings measured in the tens or low hundreds of dollars. According to an analysis from the NC Office of State Budget & Management: "The tax cut disproportionately benefits higher-income taxpayers. Households in the top 1% by income will see an average tax reduction of over $8,000, while the majority of NC households will receive a tax cut of less than $170."

"Approximately 38% of North Carolina households that file a state tax return will receive a tax reduction of less than $100. Roughly 1 million of these households have no taxable income after deductions and will receive no benefit from the tax rate cut. Nearly all of these households have incomes under $40,000."

"An estimated 1.5 million North Carolinians who live in households with incomes too low to file a state tax return — and who are not represented in the analysis above — will not benefit from the individual income tax rate reduction."

If you are a working or low-income family, you may feel the impact the most. An extra $100 in expenses could mean choosing between groceries and medicine, gas or the electric bill, and school supplies and other household expenses. That is not a small difference for a struggling family.

Wealthier households generally have more taxable income, so keeping income tax rates low can yield larger dollar savings for higher-income households. They may also be better able to pay higher fees or pay privately for services when public services are reduced. Consider the difference: Saving $100 may not change the life of a wealthy family, but an additional $100 in expenses can make a BIG difference for a family struggling to make ends meet.

If you have children or grandchildren in public schools, this matters. Our schools need funding for teachers, classrooms, school buses, books, technology, safety, and after-school programs. When state funding is tight, our children could feel the impact. If you are a senior citizen, this matters. Many seniors depend on public and community services. When budgets are cut, those important programs could face greater pressure. Just recently, North Carolina went two years without passing a state budget.

If you live in a small or low-wealth community, like Washington County, this REALLY matters. Wealthier communities may have a larger tax base and more resources to offset the loss of state funding. Low-wealth and rural communities may not. When the state sends less money, smaller counties and towns may face difficult choices: raise local taxes, raise fees, cut services, or do without. Washington County already offers fewer services than some other counties. According to last week’s paper, Commissioner John Spruill supports the amendment.  As citizens, we need to inquire which services are on his chopping block when state revenue declines, which service fees will increase, or, worse, which services will be eliminated.

Someone still has to pay. Even if the state collects less income tax, schools don't disappear. Roads don't disappear. Hurricanes don't disappear. Emergency services don't disappear. Our children's and seniors' needs don't disappear. The bills still have to be paid. The real question is: Who will end up paying them? If more of the burden is shifted to sales taxes, fees, property taxes, and county and town levels, working- and low-wealth families will feel it most.

This is about more than a tax rate. It is about our families, our schools, our seniors, our communities, and North Carolina's future.

Before you vote, ask yourself: WILL THIS HELP MY FAMILY — OR COULD IT LEAD MY FAMILY AND COMMUNITY TO PAY MORE LATER?

Don't just look at the words “lower taxes.” Look at who benefits. Look at who could bear the burden. Look at what it could mean for your family and community.

I am voting against the income tax limit amendment to protect our schools, our seniors, our communities, and our working families.

Wesley Stokes is a former chairman of the Washington County Democratic Party.