House Wants To End Earned Income Tax Credit

State lawmakers have tentatively approved a measure that would end a popular tax credit for low and middle-income residents.  House legislators passed the bill 75 to 41 yesterday.

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Credit www.ncleg.net

It would allow the state's earned income tax credit to expire after this year as scheduled. Most low and middle-income families who qualify don't receive the maximum rebate of $294. But it's a popular policy, especially among families whose meager paychecks make it a struggle to save money.

Republican leaders say the bill is part of a larger effort to reduce state spending. But Democrats say the measure is part of a war on the poor. House Minority Leader Larry Hall says there's no reason to make this change now, as Republican leaders are mulling over ideas for revamping the entire tax code. The bill is expected to be back on the House floor today for final consideration.