North Carolinians earning more than $1 million annually would pay a 7% marginal income tax under a proposal by Democratic lawmakers, who say the measure could generate nearly $1 billion each year for public schools.
HB 1073 would apply only to income exceeding $1 million. The revenue would go to public schools for teacher pay, school repairs, construction and other K-12 needs.
During a Monday morning press conference announcing the bill, Rep. Allen Buansi (D-Orange) said North Carolina’s rankings near the bottom nationally for teacher pay and per-pupil funding show the need for investment in public education.
“It’s offensive to me as a parent,” said Buansi about the low rankings. “I know it’s offensive to millions of parents across the state.”
North Carolina is the only state in the country where teacher pay is expected to drop this year, according to the latest report from the National Education Association. The 2026 report ranks North Carolina 46th in the nation for average teacher pay. The state fell three spots from last year. The report also shows the state ranks 46th in per-student funding.
Buansi called the proposal a “targeted, straightforward way to strengthen” public schools.
“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.”
The bill is unlikely to receive a hearing in the Republican-led legislature, where cutting taxes, not 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 a response by press time.
This comes as lawmakers have yet to pass a full state budget that has left teacher pay largely unchanged while costs continue to rise.
At the press conference, parents and advocates described schools struggling with staffing shortages, aging buildings and transportation problems. Speakers also criticized Republican lawmakers who have cut income taxes in recent years and expanded private-school vouchers.
Sara Dickinson, public school advocate, said some teachers at a school that created a food pantry for families have had to rely on it themselves because their salaries were not enough to cover basic expenses.
“My heart again broke when I found out that many teachers are also using that food pantry,” Dickinson said. Dickinson also described losing a Spanish teacher at her child’s elementary school after budget cuts eliminated the position.
“The children loved her, and they cried when she announced that she was leaving,” Dickinson said.
Monica Lavery, a retired clinical social worker and member of the advocacy group Patriotic Millionaires, said affluent residents like herself should pay more taxes to support public schools.
“My family never asked for these tax cuts, and we don’t want them,” Lavery said.
North Carolina teacher pay projected to decline, ranking 46th nationwide
Lavery said her daughter, who worked as a substitute teacher in the state, considered becoming a full-time teacher but left the profession because of low pay, overcrowded classrooms and long hours.
“We lost what could have been a fantastic North Carolina public school teacher,” Lavery said.
“At the end of the day,” Buansi said, “this is about making sure North Carolina has the resources to meet its obligations to our workforce, to our children and to our future.”
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