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.

You can read more about the harms of House Bill 82 in this legislative bulletin by the BTC.

To hear a portion of Tuesday’s House debate to prevent any reduction in the EITC, click below:
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8 Comments

  1. Frances Jenkins

    February 20, 2013 at 8:08 am

    First let me say, I have a the highest degree awarded in poverty. I have lived in it, through it and I continued to be amazed at the weakness of policy by those who advocate. As you continue to offer solutions, thousands are being added to the rolls each day with no results. It is a social cause for badges of honor with no gains or moving forward.Far to often, you speak from the text and not from the problem or experience. The first step is a quality education. Not every child in NC has a quality teacher, a qualified pincipal or a quality school. This is not always about money. Political hirings and poorly trained teachers entering the classroom from diluated college programs are a few of the problems. You really need to talk to the poor and not just the urban poor. Not in mass marches, but you need to get down where they live. You will be amazed what you might learn. So many things you scream about turns out to be the cake that only leads to greater problems. I am not always sure your motives are pure. The poor must be taught how to fish.

  2. gregflynn

    February 20, 2013 at 10:01 am

    Give a poor man a fish and he’ll eat for a day.  Teach a man to fish and he’ll be dependent on the U.S. Fish and Wildlife Service and the N.C. Wildlife Resources Commission to keep replenishing stocks of depleted fish. Give a rich man a fish and he’ll start a for-profit culinary school to teach the poor man how cook the fish for catered legislative lobbying receptions intended to influence control of the fish and the poor man while saddling him with $50,000 in government guaranteed student debt.

    Spend half a day at the NC Justice Center and you wouldn’t spend half your life tilting at windmills.

  3. Jack

    February 20, 2013 at 11:46 am

    Frances:

    You mentioned “poorly trained teachers entering the classroom from diluted college programs are a few of the problems.” That brings up the matter of diluted education in NC in the guise of Charter Schools K – 12 education will be diluted.

    What will be the ramifications of such a system? Corporate run Charter Schools teaching watered down history, if at all, so children won’t have a context by which to process their day-to-day living. (That’s why it’s important to learn about the Gilded Age.) Such a failed educational system plays right into the corporate plan for coming generations. Corporations don’t want questions from the drones they create. Corporations want passive, pliable, subservient minds to piece together the widgets that will be marketed to the masses. As you so eloquently stated: “The poor must be taught how to fish,” hell’s bells Frances, teaching isn’t part of the equation any more.

    As for the poor, the tone of your words is clear; if the poor would only try harder. Throughout my life I’ve been on top and laid low economically. One thing I learned on the journey is that the one advantage I had is that I’m white. I’ve seen doors shut in people’s faces because of the color of their skin when other than white or the way they talk, dress and the list goes on. Being denied opportunity after opportunity, regardless of color, and being segregated through public policy that affects housing, schools and employment so they offer the minimum can beat a person down to the point that a person will give up on themself and much more.

    I have greater access to opportunities because of my color. That’s what I’ve learned.

  4. Phil Burton

    February 20, 2013 at 3:39 pm

    I hope that even those North Carolina citizens who don’t pay attention to politics except on Election Day are watching what is going on in Raleigh. If the 9.8% January 2013 unemployment rate has gone down dramatically to under 6% in January 2014, then we’ll know all the budget cutting and tax reductions to corporations and ultra wealthy North Carolinians was the right course of action. I’m not holding my breath.

  5. Frances Jenkins

    February 20, 2013 at 5:52 pm

    Jack drink some moonshine.
    Greg, learn more about redistricting, drink moonshine to get over your deep seated anger. There are several democrats that will probably switch before this term is over. The folks in their districts are giving them h.

  6. gregflynn

    February 20, 2013 at 7:06 pm

    There’ s more to learning your ABCs than knowing where the liquor stores are located, but if moonshine is your thing then knowing where the liquor stores are really is academic.

  7. gregflynn

    February 20, 2013 at 8:46 pm

    I know you try hard to get under my skin but as one of my brothers once said, if I were any more laid back I’d be horizontal.

    Please keep comments on topic and be respectful of other commenters. Inflammatory comments will be edited or removed. Off topic comments will be marked as spam and removed.

  8. Frances Jenkins

    February 22, 2013 at 8:26 am

    Are your comments part of the Blueprint as well. Demonize! Demonize! Demonize