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Falling Behind in NC, NC Budget and Tax Center

Lawmakers let the state Earned Income Tax Credit expire at the end of 2013, making North Carolina the first state in nearly 30 years to eliminate this proven anti-poverty tool. The state EITC helps promote shared economic prosperity for all North Carolinians. It goes only to working people with modest incomes, offering extra support to pay for basic necessities.

In a new video from the series “North Carolina: First in Flight from the EITC,” Heather Partridge talks about how the state EITC has helped her family. Heather lives with her husband and three daughters in Gibsonville, where she works at Hardee’s and earns $7.55 an hour – just barely above the state minimum wage of $7.25. In past years, the EITC has helped Heather pay for everyday goods for her children as well as pay off debt.  Read More

Falling Behind in NC, NC Budget and Tax Center

As North Carolina continues to recover from the Great Recession, most of the jobs that have been added pay low wages, making affording even basic necessities difficult for many hard-working North Carolinians. Raising the state minimum wage and reinstating a state Earned Income Tax Credit (EITC) are two policy tools that North Carolina state lawmakers can use to help boost wages, widen the path out of poverty, and reduce income inequality, a report released this week by the Center on Budget and Policy Priorities (CBPP) highlights.

Wages for the least paid workers are no higher than they were 40 years ago, the CBPP report highlights. Yet evidence shows that lifting the income of families earning low wages provides a range of benefits, including improved learning and educational attainment and higher future earnings in adulthood for low-income young children. Furthermore, raising the minimum wage and an enhanced state EITC together works to put families and individuals on a path to financial stability and self-sufficiency. Read More

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Today fast food workers from around the world—including folks throughout North Carolina – are rallying for a decent raise (most workers In NC make around the minimum wage of $7.25/hour) and the right to collectively bargain.Greenville NC

And now that the state legislature has reconvened, a handful of state representatives introduced House Joint Resolution 1068 calling for a raise to the minimum wage today as well.

The legislation has been shepherded to the Commerce and Job Development Committee, and we’ll see what happens next. Specifically, let’s see what Rep. Thom Tillis, the speaker of the house and Republican U.S.-Senate candidate, will do about it.

Tillis had previously called the minimum wage an “artificial threshold” and a bid to increase it a “dangerous idea.”

But last week on MSNBC he punted –basically to himself — by saying the rate should be set at the state level.

MSNBC’s Chuck Todd repeatedly asked him if he as state Speaker of the House would be in favor of raising the minimum wage in North Carolina, and Tillis couldn’t bring himself to answer that question.

Tillis probably knows that  73 percent of people believe it’s time to raise the wage. Let’s see what he’ll do about it.

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Yesterday it was the CEO of one of the nation’s largest fast food chains and today it’s Mr. 47% —  the 2012 Republican presidential nominee. As the Los Angeles Times reports:

“Former Republican presidential nominee Mitt Romney on Friday called for an increase in the federal minimum wage, splitting with party leaders and some top business groups on what’s expected to a major issue in this year’s midterm elections.

‘I … part company with many of the conservatives of my party on the issue of the minimum wage,’ he said in an interview on MSNBC’s “Morning Joe.”

‘I think we ought to raise it because, frankly, our party is all about more jobs and better pay, and I think communicating that is important to us,’ he said.

It will be fascinating to see if Republican officials choose to follow the lead of their former party standard bearer (and former far right presidential candidate Rick Santorum — who also endorsed a hike) or instead remain true to the Koch Brothers and the far right think tanks that question even the existence of the minimum wage. North Carolina House Speaker and U.S. Senate candidate Thom Tillis seems to have made his bed with the latter camp for now. Stay tuned.

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(Cross-posted from the CEPR blog)

At the beginning of 2014, thirteen states increased their minimum wage. Of these thirteen states, four passed legislation raising the minimum wage (Connecticut, New Jersey, New York, and Rhode Island). In the other nine, the minimum wage automatically increased in line with inflation at the beginning of the year (Arizona, Colorado, Florida, Missouri, Montana, Ohio, Oregon, Vermont, and Washington state).

Last month, CEPR looked at state-by-state employment growth in the first two months of 2014, highlighting these 13 minimum wage-raising states for easy comparison. Using new employment data from the BLS, we can now update these figures with data from the month of March.

Below, the chart shows the percentage change in employment for each state. The baseline is the average of the October, November, and December 2013 employment figures, which were measured against the average employment level for 2014 (January, February, and March). Overall, the findings are even more positive than last month’s employment figures. We see, again, little to no evidence for the claim that raising the minimum wage threatens job creation efforts. Read More