In first budget, Stein seeks to suspend GOP tax cuts, give teachers huge raises

Gov. Josh Stein released a spending plan on Wednesday that would freeze corporate and personal income tax rates and give teachers the highest starting pay in the Southeast.

North Carolina Gov. Josh Stein outlines his first gubernatorial spending plan during a news conference in Raleigh on Wednesday, March 19, 2025. He calls for substantial teacher pay raises and wants Republicans to claw back future tax cuts.

North Carolina Gov. Josh Stein on Wednesday put forward his first state budget. It doesn’t hold tangible value, as the GOP-controlled legislature oversees the state’s budget process. But it serves as a symbol of the Democrat’s spending and policy priorities and a starting point in monthslong negotiations.

Most notably, Stein wants to freeze the personal income tax rate at 4.25% and corporate income tax rate at 2.25%. Doing so would require GOP lawmakers to backtrack on previously enacted budgets that will phase out the corporate income tax altogether by 2030 and steadily lower personal income taxes if state revenue targets are met.

“The truth is that we are in for some self-inflicted fiscal pain,” Stein said in a news conference, referencing prior tax cuts.