Lawmakers move to cut tax credit for low-income families, repeal estate tax (video)
Legislation reducing the state’s Earned Income Tax Credit is up for a third and final reading in the NC House Wednesday.
Democrats tried in vain Tuesday afternoon to explain the value of the EITC, which benefited nearly 907,000 low-income working North Carolinians in 2011.
“Sometimes, enough is enough folks,”said Rep. Mickey Michaux.”When you start disowning those who are unemployed, when you start taking away health care for those who can’t afford it…and now you going to affect the working poor…enough is enough.”
The Budget and Tax Center’s Tazra Mitchell noted on the Progressive Pulse earlier today that a cut in the state EITC or its outright elimination would result in a tax hike on low-earning families:
‘Beyond serving as an important tax-equity tool, the state EITC also delivers a powerful anti-poverty effect, especially for the state’s children. North Carolina already has the 13th highest poverty rate in the nation, with more than 1 in 4 of its children living below the federal poverty line. Child poverty rates for children of color hover well-above the state rate, approaching nearly 1 in 2 kids of color in some of the state’s counties. The federal EITC lifted approximately 293,400 North Carolinians—half of whom were children—above the federal poverty line during the 2009-2011 period.’
Ironically, the debate over the low-income tax credit comes as the House Finance committee prepares to take up HB-101, repealing estate taxes on Wednesday morning.