MEDIA RELEASE: Study: NC tax credits for working families build middle class, encourage work
Study: NC tax credits for working families build middle class, encourage work
The Earned Income Tax Credit and other measures benefit local economies, families throughout North Carolina
RALEIGH (May 17) – Tax credits targeted at working families help build a strong middle class throughout the state of North Carolina, new research by the NC Budget & Tax Center finds.
In particular, three state tax credits – the Earned Income Tax Credit, the Child Tax Credit, and the Child and Dependent Care Tax Credit – effectively support work and promote healthy childhood development, both of which expand opportunity for working families. This provides wide-ranging and long-term benefits for the state, says report author Edwin McLenaghan.
“These credits put money into the pockets of more than a million families, helping them make ends meet and provide for their children,” said McLenaghan. “They also spur economic activity, building a strong middle class and boosting growth in economies across North Carolina.”
All of the money from the Earned Income Tax Credit goes to low- and moderate-income families, who are more likely than wealthy families to spend the money in their local economies. This spurs economic growth more effectively than across-the-board tax cuts or tax cuts targeting corporations and the wealthy. The Child Tax Credit and the Child and Dependent Care Tax Credit help working parents afford safe, high-quality child care while also helping to offset the costs of meeting their children’s basic needs.
County-by-county information is available in the attached Excel spreadsheet. The spreadsheet shows how much each county benefits from these tax credits.
These tax credits don't add significant complexity to the tax system, McLenaghan said, but do build and strengthen North Carolina’s middle class.
“The Earned Income Tax Credit and other credits that help working families are cost-effective measures to encourage work, spur growth and promote a thriving middle class,” McLenaghan said. “These credits are great investments in North Carolina's future.”
For more information, contact: Alexandra Forter Sirota, email@example.com, (919) 861-1468; or (919) 801-0465; Edwin McLenaghan, Edwin@ncjustice.org, (919) 856-3192; Jeff Shaw, Director of Communications, NC Justice Center, firstname.lastname@example.org, (919) 863-2402 (office) (503) 551.3615 (mobile).
COUNTIES BENEFITS MOST FROM WORKING FAMILIES TAX CREDITS
PER CAPITA DOLLARS