North Carolina's Earned Income Tax Credit (EITC) is a modest but critical support for working families earning low wages. It ended December 2013 because policymakers failed to extend it as part of the tax plan that further shifts the tax load to low-income and middle-income families in the state.
The credit was a small investment available only to people who work. It continues to be considered a powerful anti-poverty tools, especially for children. The EITC also serves to offset the disproportionate share of income low-wage workers pay in total state and local taxes—not just income taxes—compared to the rich. It benefited nearly 907,000 low-paid workers in every county in 2011.
While families can still claim the tax credit this tax season, next tax season it will be gone unless policymakers reinstate the EITC. Now is precisely the wrong time to take away this support for working families in North Carolina.