May 31 2008
N.C. House May Boost Earned Income Tax Credit
A proposal that passed the House Finance Committee this morning would boost the state earned-income tax credit from 3.5 percent to 5 percent of a similar federal credit.
The state would return an estimated $21 million more to taxpayers per year, for a total of $70 million under the credit.
If the proposal becomes law, legislators drawing up this year’s state budget would have to cut spending or find another way to way to offset that loss of revenue.
The credit is refundable, meaning even workers who don’t earn enough to pay income taxes would receive money.
So it’s a welfare handout. I’m certainly not opposed to people getting back what they paid, but why are people who haven’t paid any income tax receiving an “earned income tax credit?” That’s realistically impossible for them to receive a credit on money they haven’t paid so this Marxist transfer of wealth from one class of people to another is wrongly named.
