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@NCCapitol

House gives tentative OK to tax bill that does not extend credit for working poor

Posted February 19, 2013
Updated February 20, 2013

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— The state House gave key approval Tuesday to legislation that would eliminate a state tax credit for low-income workers at the end of this year.

The demise of the earned-income tax credit was included in House Bill 82, which updates sections of the federal tax code for North Carolina taxpayers.

The bill passed 75-41 on second reading. A final House vote is expected Wednesday.

Democrats pointed to the bill as the latest example of what they call a "war on the poor" by the General Assembly, following recent bills to slash unemployment benefits and block Medicaid expansion.

"People say you do policy either with a carrot or a stick, and we have pretty much pulled the stick out pretty well during this session," House Minority Leader Larry Hall said.

Rep. Deborah Ross, D-Wake, criticized the House for ending the EITC only one day before a committee considers legislation that would abolish an inheritance tax, which would benefit wealthier individuals and families.

"It's a small amount of money that makes an enormous difference in people's lives – people who are living at the edge, people who are working," Ross said, noting one family used their EITC money to place a down-payment on a mobile home so they would have a place to live.

The House looked at dropping the EITC last year as part of a tax reform effort but decided to extend it for one more year, said Rep. Julia Howard, R-Davie.

"It is in our best interest not to extend it further," Howard said.

Hall, D-Durham, noted that lawmakers haven't yet taken up tax reform, so there is no reason to eliminate the EITC from those debates ahead of time.

Rep. Paul Luebke, D-Durham, tried to amend the bill to extend the EITC for another five years, but his proposal failed 74-42.

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  • wileymorris Feb 20, 6:33 p.m.

    I thought republicans did not want to raise taxes. What will Grover say about this.

  • jlp Feb 20, 1:24 p.m.

    b4reelnow,

    They just don't see it. They don't care about anyone else. They only care when it affects them. It has been amusing to see conservatives on this message board who agree with everything this legislature is doing except the unemployment cut because they themselves were unemployed. If they were gainfully employed you bet they would have thought it was the next best thing since sliced bread. GOP for ME, ME, ME. It is sad and despicable. I only hope more lower class conservatives get a healthy dose of GOP medicine. It is the only thing that will open their eyes. Of course about half of them will still blame Democrats when it is members of the party they support that are hurting them.

  • b4reelnow Feb 20, 1:04 p.m.

    Well, don't be dismayed when the shoe will start hurting the other foot. Know what I mean? It seems some folks have a whole lot to say when they are not in the situation as others. Not everyone is in the same situation, nor is everyone born with a silver spoon in their mouths! And yes we can rant, rave and brag about how hard we work etc etc, but the question is what would you do if something happened to your security net? Think before you speak for you may one day find yourself standing in the welfare line.

  • b4reelnow Feb 20, 9:57 a.m.

    Yep! Truth be told....the rich gets richer and the poor gets poorer. Sign of the times my friend, sign of the times. Folks we are truly living in the last and EVIL days!

  • hp277 Feb 20, 9:42 a.m.

    War on the Poor, indeed.

    Cut to Unemployment Insurance - Done.

    Blocking expansion of Medicaid to working poor - in the works.

    Cut to EITC - in the works.

    Elimination of inheritance tax - in the works.

    Elimination of income taxes for individuals and corporations - in the works.

    Replacement of income taxes with sales taxes - coming soon.

    Raising the sales tax to replace the income tax - coming soon.

    Raising electric rates by the new GOP-dominated Utilities Commission - coming soon.

    How many hits can the poor (mostly kids, by the way) take? where does the greed stop?

  • ctya Feb 20, 9:40 a.m.

    Let's see how many times welfare comes up

  • xxxxxxxxxxxxx Feb 20, 9:15 a.m.

    It gets more frightening every day.

  • ohmygosh Feb 20, 9:04 a.m.

    They are still eligible for Federal EITC.

  • Dukefan1 Feb 20, 8:52 a.m.

    How is it in our best interest not to extend the EITC for the poor? How is it in our best interest for millionaires not have to pay an inheritance tax? Boy, are our values misplaced! God help us!

  • jeffdewitt Feb 19, 8:51 p.m.

    It's not a "tax credit" it's a form of welfare.