A North Carolina movement asks voters to reject corporate tax breaks

This article A North Carolina movement asks voters to reject corporate tax breaks was originally published by Waging Nonviolence.

The affordability crisis is hitting people hard across the country, but it’s especially acute in North Carolina. For the sixth year in a row, North Carolina holds the distinction of being the worst state in the nation for workers based on its wage policies, worker protections, and rights to organize, according to Oxfam. Nearly half of renters in the state are struggling to afford their homes, while nearly a third of households are cost-burdened (spending over 30 percent of their income on housing).

North Carolina voters’ eyes may light up when they see two proposed constitutional amendments on their November ballots: one to cap the state personal and corporate income tax rates at 3.5 percent, down from a cap of seven percent, and another to limit how much local governments can levy in property taxes. On their face, they appear as if they might bring much-needed tax relief to North Carolina’s working class. 

The amendments are deceptively framed as being beneficial to working people and homeowners, reading as if they would lower individual taxes when there’s no indication that they will, according to Todd Warren, statewide campaign strategist at Down Home North Carolina, a member-led organization that endorsed a “no” vote. Instead, Warren said, the measures would be a giveaway to corporations and wealthy individuals by limiting how much they pay toward the public good — and a “scam” for voters.

Since the passage of the two Republican-sponsored bills that placed the amendments on the ballot this past May, Down Home NC and over 20 other groups have come together as the NC Vote Against coalition to defeat them, as well as to oppose a third amendment that would enshrine voter identification requirements in the state constitution.

Each organization has its own expertise and its own tactics, but a common message: The amendments will not benefit working-class people, but rather corporations and the ultra-wealthy. Each group is playing its part in collecting a total of 100,000 pledges from North Carolinians who commit to voting against the amendments.

The fight to fund the future

Down Home NC joined together with another coalition member, the Carolina Federation, to launch the Fund the Future campaign, deploying nearly 200 paid canvassers.  

Jenn Frye, co–director of the Carolina Federation, spent part of this weekend canvassing at the poll at a Durham, North Carolina library, where she convinced an older couple to vote “no” on the amendments. After a member-led endorsement process that included political education on the amendments, a leadership summit and a vote at a statewide membership meeting, the Carolina Federation decided they wanted to deeply engage in the amendment fight. “We see more and more people in North Carolina who agree that corporations and the wealthiest individuals aren’t contributing what they owe when day in and day out, North Carolinians are working really hard,” Frye said. “We pay our taxes, and we contribute what we owe.”

Down Home NC and the Carolina Federation were founded in 2017 and 2018, respectively, in the wake of President Trump first taking office and Republicans winning control of both North Carolina’s state legislature and governorship in 2013 (for the first time since Reconstruction). The groups share a long-term goal of loosening corporate power’s grip on the state legislature and supplanting it with people power.

The Fund the Future campaign campaign is knocking doors, talking to voters at the polls, getting resolutions against the amendments passed by local governments and school boards, and placing signs in small businesses and in yards, among other tactics. So far, the Carolina Federation’s canvassers have knocked on over 600,000 doors across six counties, collecting over 33,000 pledges, while Down Home NC’s canvassers had knocked 500,000 doors across 20 counties and collected about 8,000 pledges.

“Whatever the outcome of this amendment fight, Federation’s members plan to launch a statewide campaign next year with other organizations like Down Home and Siembra to demand that the legislature pass fair tax policies that make corporations and the wealthiest individuals pay what they owe our communities in taxes,” Frye said. “That may be a multi-year fight. It is one our members feel is worth waging.”

North Carolinians deserve funding for real solutions, Frye said, such as property tax assistance programs, childcare tax credits, an increased minimum wage (it’s currently the federal minimum, $7.25 per hour), and protections against corporate landlords.

Todd Warren of Down Home NC said he has never seen such a robust response to a single issue in over 20 years of working and organizing in North Carolina.

Because Down Home NC’s chapters run organizing campaigns to make sure that local budgets go toward working people’s needs, members recognized immediately how the amendments would exacerbate the underfunding of local services. Like the Carolina Federation, its members endorsed a “no” vote in addition to endorsing political candidates who are supportive of its platforms.

Many voters don’t know about the amendments, Frye said, and if they do, they’re often not sure what to make of them or inclined to support them because they’re exhausted and stressed out due to the affordability crisis. But when they are engaged in conversation about how the amendments affect services they rely on, “then people are movable,” she said.

Frye gave the example of her own mother, who recently suffered a series of strokes. Fortunately she was living in a North Carolina county with adequately funded Emergency Medical Services, or EMS. But residents of counties with underfunded EMS operations could face a life-or-death situation during medical emergencies.

“Right now, people feel like ‘taxes’ is a dirty word,” said Warren, a former public school teacher. “But if they connect it to something that they care about, like, ‘Oh, in Johnston County, we have explosive population growth. We need to build a new high school. These amendments would limit our ability to [do that].’ Then they’re like, ‘I’m gonna vote “no” on it.’ We can do that in a five-minute organizing conversation. It doesn’t take much for people to see through the scam.” 

North Carolina’s allegiance to corporations

North Carolina has lost out on almost $18 billion in annual tax revenue since Republicans began overhauling the tax system in 2013. Personal income tax reforms are so regressive that the state’s lowest earners pay more than 10 percent of their income in state and local taxes, while the highest earners pay only six percent. For corporations, the income tax has dropped from seven percent to two percent, the lowest in the nation, and will be phased out completely by 2030. As tax revenue shrinks, so does local governments’ ability to fully fund vital public services.

“Our public services, the things that are supposed to strengthen our communities and support all families in all counties in North Carolina, are being stretched to the limit by the tax cuts,” Frye said. “These amendments want to take that and enshrine it into the [state] constitution.”

Exploitation has marked North Carolina’s economy since the days of chattel slavery. Post-slavery, Black families like my own (in Bertie County) sharecropped for a living well into the 20th century — jobs now carried out by migrant workers who experience poor labor conditions. The Duke family once had a monopoly on the state’s tobacco industry and founded both Duke Energy and Duke University, two institutions notorious for not paying their fair share.

Now the state and some local governments are subsidizing data centers, of which over 60 have been built and at least 30 more are planned or under construction. Under pressure, the state eliminated some tax breaks for data centers in July, but three remaining sales tax subsidies are projected to rob the state of $250 million in revenue annually. Meanwhile, between 2017 to 2024, the average electricity bill of a North Carolina household rose by nearly 30 percent. The state is subsidizing wealthy corporations as regular folks struggle to keep their lights on.

A history of underfunded public schools

On May Day this year, thousands gathered in the capital city, Raleigh, to rally for fully funded schools. Tax cuts have already contributed to the state being ranked last in the country in public school funding by GDP.

Isabell Moore, a coordinator at North Carolina Families for Public Schools (a project of Down Home NC) and a public school parent, said the amendments could be “catastrophic” for public education. North Carolina Families for Public Schools comprises countywide, districtwide and schoolwide teams of volunteer organizers who are calling for equitable, fully funded public schools. These teams are currently circulating a pledge to fund the future for children that includes voting against the amendments, along with measures like fair funding for special education; higher teacher pay; and safe, inclusive schools for all students, including those from immigrant families. 

North Carolina Families for Public Schools had already voted on its 2026 platform when the amendments dropped in May but decided to incorporate them because they stand directly in the way of their goal to win fully funded schools. Their organizers have been tapping into their personal networks to turn people out to vote against the amendments, holding house parties and school-based parties to educate people on the amendments, and more. 

“Everyday working people and public school parents are creative and tough and scrappy,” Moore said. “If we commit to not just voting ‘no’ but also organizing other people in our networks and in our school communities, that’s when we really start to build the power to defeat the amendments.”

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Even public schools in wealthy counties like Durham, home to Duke University (which has a $14.3 billion endowment) and Duke University Health System (which made nearly $766 million in profits last year), are chronically underfunded. The riches of these two tax-exempt nonprofit institutions haven’t trickled down. Among other demands, the Durham Rising coalition—made up of workers, students, and community members—is calling for Duke University to help fund public schools and educator salaries by making a voluntary payment to the local government called a PILOT, or payment in lieu of taxes.

Since the summer, Christy Patterson, vice president of the Durham chapter of the North Carolina Association of Educators, or NCAE, and a middle school teacher for students with disabilities, has been knocking on doors to tell folks the amendments are for billionaires, not everyday people. The NCAE, which functions as a professional organization because North Carolina bans public-sector collective bargaining, is part of the NC Vote Against coalition and was one of the main architects of the “Kids Over Corporations” rally in May.

“Our voters and our community are engaging us in conversation on the doors,” Patterson said. “We’ve had some conversations that really made us think. Constructive friction on the doors is always good because everybody’s not going to say the same thing or think the same. They’re just so ready to open the door and talk to us, so we are grateful for that.”

Organizing for the long run

In a September poll by Elon University, 67 percent of respondents were in favor of the income tax amendment, and 72 percent supported the property tax amendment. Organizers are working hard to turn that tide.

However, even if they don’t get their desired outcome, there is an entire movement that will continue holding North Carolina corporations and wealthy households accountable until they contribute their fair share to the public good. Organizations like the Carolina Federation, Down Home NC, and the NCAE have been engaging in this work for years and are in it for the long haul.

Warren hopes the Fund the Future campaign can help shift the narrative so that people understand that “taxes” aren’t inherently bad but rather a tool for improving quality of life for themselves, their families, and their communities. 

“Through years of listening and campaigning, we know what working people across North Carolina want,” Warren said: well-funded, well-staffed public schools, healthcare access, transportation options and recreation programs for kids, infrastructure for effective disaster response. “When we talk to people about those things, even when they understand that it may involve an increase in taxes for them personally, they support funding those types of programs.”

This article A North Carolina movement asks voters to reject corporate tax breaks was originally published by Waging Nonviolence.

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