The 900,000 poorest working families in North Carolina just got another tax hike from the conservatives who swept state legislature elections in 2010.
The change took effect at the beginning of 2014, meaning that the taxes those families file this spring will be the last to feature the state’s tax break for the working poor. The provision, known as the Earned Income Tax Credit or EITC, will also be 10 percent less generous in its final year. State-level EITCs work by tacking on an additional benefit to the federal EITC, and the law repealing North Carolina’s EITC for 2014 also cut the credit from 5 percent to 4.5 percent of the federal benefit. [snip]
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. [our emphasis]Class warfare? What class warfare?!
(Image: Where's Robin Hood when you need him?)
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