Raleigh, North Carolina — North Carolina Democrats are proposing a new tax on high earners to raise money for public schools, teacher pay, construction, and other K-12 needs.
House Bill 1073 would create a 7% marginal income tax on annual income above $1 million. Democratic lawmakers said the proposal could generate nearly $1 billion per year for public education. The tax would apply only to income exceeding the $1 million threshold, not to all income earned by affected taxpayers.
Rep. Allen Buansi, a Democrat from Orange County, said North Carolina’s low national rankings for teacher pay and per-student funding show the state needs to invest more in schools. He called the plan a targeted adjustment rather than a broad tax increase.
The National Education Association’s 2026 report ranks North Carolina 46th in average teacher pay and 46th in per-student funding. Democrats and school advocates say districts are struggling with staffing shortages, aging buildings, transportation issues, and rising classroom needs.
The bill is unlikely to advance in the Republican-led General Assembly, where lawmakers have prioritized income tax cuts and expanded private-school vouchers in recent years.
Public school advocates at Monday’s press conference said low pay has driven teachers away from the profession and left some educators struggling to meet basic expenses.
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