Some of the most damning facts about the state of North Carolina’s tax system and what the most recent changes enacted by state leaders really portend for average families — especially the state’s one-of-a-kind repeal of the Earned Income Tax Credit — were explained at a Budget and Tax Center press briefing this morning. This is from a statement the group released after the event:
“The tax plan passed by the General Assembly during the 2013 legislative session resulted in a tax shift onto working families. Advocates from around the state joined together on Tax Day to bring awareness to the plan, which is bad for working families, children, business, and the economy. Under the new plan, which will took effect in January 2014 and will impact income tax filing in 2015, low- and middle-income families will see their taxes go up on average, while wealthy taxpayers and corporations saw large tax cuts.
The state Earned Income Tax Credit was also a casualty of the new tax plan, as lawmakers decided to let the credit expire, in turn making North Carolina’s upside down tax system even worse. The EITC has helped families across the state pay for bills and basic necessities such as groceries and car repairs, while offsetting other taxes and work expenses that struggling working families pay….
Nearly one million North Carolina families will claim the state EITC for the last time on Tax Day, bringing pain to families and the state’s economy. It’s not too late to reverse course, however. State lawmakers should reinstate the EITC in May during the Short Session, said Tazra Mitchell, a policy analyst with the Budget & Tax Center, a project of the NC Justice Center.
‘The EITC goes to families that work but earn low wages, and helps them keep more of what they earn so that they can support their children, get a foothold in the labor market, and avoid public assistance,’ Mitchell said. ‘Nearly 1.2 million Tar Heel children, not just their parents, will feel the economic pain brought on by the loss of the state EITC. Its loss could push families into poverty at a time when North Carolina already has the 10th highest poverty rate in the nation.’”
And if you’re looking to place the current tax debate in a somewhat broader context, check out today’s Weekly Briefing “A Tax Day sermon.”