JUST RELEASED: Tax Extenders Package Would Leave NC Taxpayers Behind
Congress is working to address the upcoming expiration of various temporary tax breaks in an effort referred to as a “tax extenders” package. Recent proposals would actually expand federal deficits while leaving behind working families and benefiting large corporations through the extension of existing tax breaks and expansion of new ones. For more on why the current tax extender package is flawed, see this analysis by the Center on Budget & Policy Priorities.
For North Carolina, the failure to secure extension of improvements to the Earned Income Tax Credit and Child Tax Credit in this package would deal another blow to taxpayers in our state who are struggling under a state tax code that has shifted the tax load onto their shoulders. More than 522,000 North Carolina families would be impacted if the improvements to the EITC and CTC are not extended beyond 2017. Nearly 430,000 of whom would be pushed into poverty as a result.
IN FOCUS: Constitutional Conventions & Balanced Budget Amendments
A number of states have passed resolutions calling for a constitutional convention, and proponents of a constitutional convention are targeting more states in an effort to obtain the 34 states needed to call one. North Carolina has seen a resolution but it did not get a hearing in 2014. Among the potential harmful changes to the Constitution that could result is a balanced budget amendment which would hamper the country’s ability to deal with economic downturns and threaten the effectiveness of core public programs.
For more on North Carolina’s resolution that did not pass, see NC Policy Watch reporting here.
For more on the damage that a constitutional balanced budget amendment could cause the economy, check out this analysis from the Center on Budget & Policy Priorities.
ABOUT OUR FEDERAL BUDGET & TAX WORK
State level decisions are often impacted by what is going on at the federal level. Particularly important in the current federal debate with significant implications for North Carolina are discussions of deficit reduction and tax policy, most specifically the Bush Tax Breaks.
Federal Tax Policy – The country, like the state, is in need of revenue reform that can improve the alignment of the tax system with ability to pay and ensure that investments can be made to support the economic recovery and a strong economy moving forward. Key to progressive federal revenue reform will be eliminating the Bush-era tax cuts for those earning more than $250,000. The Budget and Tax Center analyzes the federal tax system, its progressivity and adequacy, and how it impacts North Carolinians.
Deficit Reduction – Deficit reduction has been a significant part of the public debate in recent years. The Budget and Tax Center analyzes deficit reduction proposals with an eye to their impact on North Carolina and communicates with and informs partners and North Carolinians about the importance of these federal discussions to their everyday lives.