North Carolina State AFL-CIO
Urgent Action Needed on State EITC

It is time for North Carolina to join 20 other states and D.C. by adding a refundable state earned income tax credit to the federal one. By providing this tax credit to moderate- and low-wage workers, the EITC improves tax fairness, supplements wages and lifts families and children out of poverty.

The NC House of Representatives has taken the first step towards enacting a 5 percent refundable state EITC by including it in their Budget Bill, which now moves to the NC Senate. Use the form below to send an email directly to your State Senator to show your support for a refundable state EITC.

Sample Letter for Campaign

Subject: Support the NC Earned Income Tax Credit

Dear [ Decision Maker ] ,

I write today asking you to support the creation of a refundable state Earned Income Tax Credit for North Carolina's working families.

North Carolina's middle-class and low-wage workers need tax relief. Heavy jobs losses in industries that once paid high wages and good benefits and a tax system that increasingly relies upon middle-class and low-wage workers means that working families are left to foot higher tax bills while meeting basic needs with less income than ever. A refundable state Earned Income Tax Credit (EITC) is one way to address this problem.

The federal EITC rewards work, improves tax fairness, and raises more families and children out of poverty than any other program. North Carolina should add to the benefits of the federal EITC by implementing a refundable state EITC that would offset the state and local taxes these families pay.

The House has acted, including a refundable state EITC set at 5% of the federal credit starting in 2008-2009 in their Budget Bill, which the NC Senate will now consider. This is a great start to helping working families make ends meet and improving tax fairness in our state.

My family and I hope we can count on your support of a refundable state EITC in the NC Senate.

Thank you for your consideration of this important matter.

Sincerely,

Campaign Launched:
May 09, 2007



Background Information

An EITC is an anti-poverty tool that supplements the income of working poor families. A state EITC will help boost the incomes of more than 700,000 North Carolina families. An EITC will also reduce the number of families with children that are living in poverty that are still required to pay state income tax. Most states do not tax below the federal poverty level. To qualify, individuals must have earned income to claim an EITC. The amount of credit is much greater for individuals with children. The EITC is administered through the personal income tax and is based on the individual's income, filing status, and number of dependents. The federal EITC is refundable nationally and in 13 states. A refundable credit allows individuals to receive the full amount of their earned credit. If a family has no income tax liability, the EITC amount the family qualified for would be refunded. Nonrefundable credits limit the earned credit to the individual's income tax liability.

We need to show lawmakers in Raleigh that there is broad public support for a refundable state EITC.