January 14, 2013

North Dakota Economic Policy Project: Revised Analysis of 2011 Individual Income Tax Reductions

ITEP Work in Action

North Dakota Legislators passed nearly a half billion dollars in tax cuts, reductions and exemptions this session. Some of those tax breaks may have been warranted, but they should have been targeted primarily to North Dakotans working to sustain or achieve a middle class life.

One tax cut passed by the 2011 Legislature reduced the rates associated with each of North Dakota’s income tax brackets by 18%. This will cost $120 million over the upcoming two-year budget cycle.    
    
This rate cut will also make North Dakota’s tax system even more unfair than it already is. Had the Legislature added an Earned Income Tax Credit to the rate cuts targeted to working families with low incomes, the legislation could have been improved.

Read the Full Report (PDF)





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