Unless lawmakers reverse course, close to one million working families in North Carolina will claim the state Earned Income Tax Credit (EITC) for the last time this tax season, bringing pain to individual families and the state’s economy. Last year, North Carolina lawmakers put an end to the state EITC and subsequently pursued deep tax cuts that primarily benefit the wealthy and profitable businesses 1. The result is a tax shift from high- to low-income North Carolinians that is neither true tax reform nor good for the state economy.
The EITC goes to families that work but struggle to get by on low wages. It helps them pay for basic necessities, significantly reduces child poverty and improves kids’ chances of success as adults.
Even before the loss of the state EITC, our state already asked its lowest-paid workers to pay more as a share of their income in state and local taxes than its wealthy taxpayers. Without the EITC, these problems are worse, and our tax code even more upside down. It’s not too late to reverse course. State lawmakers can reinstate this proven policy tool.
Click on the map of counties below to access data on the value of the EITC in each of the state’s 100 counties.
Learn more about the state EITC here.
1 Johnson, Cedric. “Final Tax Plan Falls Short of True Tax Reform.” NC Budget and Tax Center. 2013. Available here: http://www.ncjustice.org/?q=budget-and-tax/btc-reports-final-tax-plan-falls-far-short-true-tax-reform