New research out the Carsey School of Public Policy at the University of New Hampshire shows the powerful anti-poverty effect of the federal Earned Income Tax Credit in states. North Carolina, it turns out, has seen one of the greatest shares of its population benefit from this policy in the country.
A full 3 percent of the overall population would have been poor in North Carolina were it not for the federal EITC. Such a growth in poverty would have further held back the economy from reaching its full potential as working families struggle to maintain spending and make investments in their careers and families that can boost the economy.
The boost to the economy from the economy occurs in the short- and long-term. Children in families that receive the EITC also are more likely to do better in school and have increased lifetime earnings.
Here are some of the key findings from the report for North Carolina: Read more