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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

 

NC Budget and Tax Center

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

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Pat McCrory 4Maybe it’s the ongoing game of musical chairs in Gov. Pat McCrory’s communications staff or maybe it’s just the man himself, but whatever it is, the Governor’s public pronouncements continue to be peppered with admissions and allegations that bespeak a remarkable degree of obliviousness to the facts and the implications of his administration’s policies.

Yesterday morning’s announcement on raising teacher pay for new teachers featured a classic example. As the Governor began his remarks on his proposal and attempted to lay out the groundwork for it, he made the following rather amazing (and, one has to note, grammatically-challenged) admission:

“Today sadly, the starting teacher pay in North Carolina makes only $30,800. You know, that’s not even enough to raise a family or to pay off student loans, which this new generation of teachers are having to borrow money to go to college at this point in time. How do we expect someone to pay back that loan at that starting salary?”

While the Guv deserves an “attaboy” for making such a statement (yes, teachers make too little and government should do something about it!) he deserves nothing but a big “what the heck?!” for the stunning hypocrisy and lack of awareness it shows with respect to so many of his other policies. Read More

Falling Behind in NC, NC Budget and Tax Center, Poverty and Policy Matters, The State of Working North Carolina

Today is EITC Awareness Day – also referred to as the Earned Income Tax Credit (EITC). The EITC is a federal tax credit that encourages work by boosting the income of low- and moderate- income working people and offsets federal payroll and income taxes. The EITC has proven to be a powerful tool in helping lift families out of poverty and improving the well-being of young children.

In 2007, a state EITC was established to help further boost the wages of low- and moderate-income workers in North Carolina and offset the higher share of state and local taxes they pay as a percent of their income compared to high-income workers. More than 900,000 North Carolinians claimed this tax credit in 2011, according to the most current tax information provided by the NC Department of Revenue. The impact of the EITC spans across the state, with taxpayers in each of the state’s 100 counties claiming the tax credit (see this interactive map).

Unfortunately, this tax filing season will mark the last year that low- and moderate-income North Carolina workers will benefit from the state EITC. State leaders allowed the state EITC to expire at the end of last year and chose not to extend the tax credit as part of the tax plan passed last year. As a result, the expiration of the state EITC represents a tax increase for more than 900,000 hardworking low- and moderate-income North Carolina taxpayers, for which every dollar counts in their efforts to make ends meet.

NC Budget and Tax Center

This year marks the 50th anniversary of the start of the War on Poverty and Wednesday, January 8th in particular marks the 50th anniversary of LBJ’s speech in which America’s War on Poverty was declared. National media and political figures have been weighing in on whether the War on Poverty has worked, is a “Mixed Bag”, or has missed the mark. The Budget and Tax Center will be launching a blog series this month which will look in depth into the lasting effects of the War on Poverty, its successes, and the challenges that still lie ahead. We’ll also be doing some must-read myth busting as it relates to income and poverty.

What we do know is that the poverty rate has declined since the War on Poverty was declared, and it has declined even more significantly when supplements such as the Supplemental Nutrition Assistance Program (SNAP, formerly known as food stamps) and the Earned Income Tax Credit (EITC) are factored in. What we also know is that even as productivity of workers has increased, wages have stagnated for middle and low income families and inequality has continued to rise.

The War on Poverty and associated safety net programs, which have been a lifeline for millions of families, have done their job to the extent that we have let them. Going forward it is imperative to make adequate and real investments in the programs that we know work in lifting families out of poverty such as the EITC and SNAP, but also to tackle the broader issue of wage stagnation and inequality by ensuring, among other strategies, that we have a minimum wage that reflects the cost of living in the 21st century, and by taking a long hard look at the racial and class inequity that still plagues our nation and our state.