NC Policy Watch: North Carolina can make tax system more fair by reinstating its state Earned Income Tax Credit
ITEP Work in ActionIt comes as no surprise to working families that North Carolina’s tax system is fundamentally unfair. Families who make less than $47,000 a year pay, on average, nearly 2 times more of their income in state and local taxes than those making more than $345,000. But taxpayers don’t have to accept this fundamental unfairness. One of the best ways for our state to improve the fairness of its tax structure is through reinstating a refundable Earned Income Tax Credit.
A new report, Improving Tax Fairness with a State Earned Income Tax Credit, by the Institute on Taxation and Economic Policy shows just how effective a refundable Earned Income Tax credit (EITC) can be in counteracting North Carolina’s upside-down tax code.