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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.   Read More

ff-8292013It’s depressing as hell, but everyone who cares about North Carolina public policy should make this new report by the N.C. Budget and Tax Center’s Cedric Johnson: “Who Pays in 2014″ a part of their Tax Day reading list.

As Johnson reports:

“Changes are coming to who pays taxes in North Carolina, and the news is not good for middle- and low-income taxpayers. This tax season marks the final year taxpayers will file their income taxes under the state’s old tax code and by next year it will be apparent to many taxpayers that the tax plan has not just reduced available dollars for investing in core public services, but also has increased the tax load for many. Read More

Blue slipIn case you’ve lost count, today is Day #289 on the Richard Burr Blue Slip Watch. It’s been nearly ten months since President Obama nominated federal prosecutor Jennifer May-Parker to fill what is the longest-standing vacancy in the federal court system in North Carolina’s Eastern District. Unfortunately, as we have reported repeatedly on this site, Burr is blocking consideration of May-Parker unilaterally and refusing to say why. It’s a disgraceful situation that is made only worse by the fact that May-Parker would be the first African-American and only the second woman to serve on the federal bench in the Eastern District in its history.

And speaking of inexcusable behavior by North Carolina elected officials, commentator Marena Groll of ENC Weekly did a great job this week of skewering Gov. McCrory and the General Assembly over the state’s worst-in-the-nation tax policy changes.

And speaking of the state’s misguided economic policies, Read More

A new report by the Annie E. Casey Foundation explores the intersection of race and opportunity and finds that in North Carolina, children who are white or Asian are in a better positioned for success than black, Latino and American Indian children.

The report examines 12 indicators — such as high school graduation rates, teenage birthrates, employment prospects, and family income — to determine a child’s success from birth to adulthood.

In North Carolina, using a single composite score placed on a scale of one (lowest) to 1,000 (highest), Asian and Pacific Islander children have the highest index score at 746 followed by white children at 687. Scores for Latino (347), American-Indian (364) and African-American (346) children are distressingly lower.

“North Carolina’s future prosperity depends on our ability to ensure that all children can achieve their full potential,” said Rob Thompson, director of communications for NC Child. “By 2018, children of color will represent the majority of children in the United States, and as our state’s demographics follow suit, it’s more important than ever to create equitable opportunities for children of color.”

Thompson notes that public policies that promote access to high-quality early learning opportunities and alleviate financial hardship for working families can improve opportunities for children of color.

He also points to the expiration of the state Earned Income Tax Credit (EITC) and cuts early childhood programs like Smart Start and child care subsidies as policy decisions that will increase the barriers for many children of color in North Carolina.

To see how North Carolina fared on the 12 indicators used in this report compared to the rest of the country, click on the graphic below:

 

Annie E cASY MAP

 

Yesterday, President Obama released his fiscal year 2015 budget proposal that includes several important improvements to the pro-work Earned Income Tax Credit (EITC) and Child Tax Credit (CTC). When taken together, these improvements will reduce poverty among low-wage workers and their families, reduce income inequality, strengthen work incentives, and give a boost to North Carolina’s economy—all without adding a dime to the deficit.

Under the President’s proposal, approximately 381,000 low-wage workers without children in North Carolina would get a much-needed income boost. Currently, a childless adult working full time at the minimum wage pays significant federal income and payroll taxes, but receives an EITC of less than $30. In fact, childless workers are the sole group of workers that the federal tax system actually pushes below the poverty line, according to the Center on Budget and Policy Priorities.

Fortunately, the President’s proposal would reverse course and boost tax fairness by expanding the now-tiny EITC for childless workers, an idea that has growing support across the political spectrum. The proposal would also make workers between the ages of 21 and 25 eligible who are currently excluded from qualifying for the EITC. Read More