North Carolina Just Gave Millionaires a Tax Cut, Raised Taxes on the Poorest 900,000 Working Familie

[applegrove]

North Carolina Just Gave Millionaires a Tax Cut, Raised Taxes on the Poorest 900,000 Working Families

by Alan Pyke at Moyers & Co

http://billmoyers.com/2014/01/15/north-carolina-just-gave-millionaires-a-tax-cut-raised-taxes-on-the-poorest-900000-working-families/

"SNIP....................................


In order to qualify for the federal or state-level tax credit, tax filers must earn less than about $50,000. The goal of the credit is to buoy the incomes of working people whose employers pay them too little to provide the economic stability that having a job is supposed to ensure. Many conservatives who oppose other policies to boost poor peoples’ income, such as minimum wage hikes, support the EITC as an alternative way of keeping working people out of poverty without interfering with how private businesses operate.

But that argument didn’t carry the day among North Carolina Republicans, and lawmakers slashed and then eliminated the state’s EITC during last year’s legislative session. That change was overshadowed by the GOP’s broader changes to the basic shape of the income tax code in the state to favor the rich and harm the rest.

Along with the disappearance of the EITC, low-income North Carolinians will be paying higher taxes in order to pay for a tax cut for the richest people in the state. Republicans moved from a two-tiered, progressive income tax system to a flat tax rate of 5.8 percent. A person who earns a million dollars per year will get a roughly $10,000 tax cut thanks to that move, but the bottom 80 percent of the income distribution will see their taxes rise. That means that four out of five taxpayers in the state were going to pay more next year even before the EITC repeal.

The combined effects of those tax changes give poor North Carolinians some incentive to move out of the state, a population shift Gov. Pat McCrory (R) hopes to encourage. There are 25 states that still offer some form of an EITC, including McCrory’s northern neighbor of Virginia, and the District of Columbia still maintains the credit as well.






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[applegrove]

1. Is that the end game? Make the poor so utterly destroyed that they move to a more generous (blue)

state?

[JaneyVee]

2. If there's a way to make the rich richer and the poor poorer...

Republicans will find a way. Renew UI.

[blkmusclmachine]

3. Trickle Down, bay-bee!

[dionysus]

4. yay evil people!

[hfojvt]

5. Why move out of the state?

That should be an even bigger incentive to vote those jacka$$holes out of office.

Election 2014 - defeat every "representative" who voted for this.