EITC

America has always been a country on the move. Across the ocean, across the continent, and, for decades after the frontier officially closed, Americans have moved away from (and often…

Most conservative and libertarian groups opposed ObamaCare repeal efforts because they did not go far enough to dismantle state intervention in health care. Rand Paul took the same line. John…

Have you ever wondered why people are not convinced by your arguments to get government out of the business of trying to fix a problem because its interventions only cause…

There are few aspects of the 2013 tax reform in North Carolina that have drawn more criticisms from Democrats and progressives than the elimination of what is known as the…

RALEIGH – North Carolina taxpayers would pay the price if state lawmakers endorse complex fund-raising schemes this year. That’s according to a new John Locke Foundation Policy Report. Click…

Budgets reflect priorities. When families face a new expense, they must cut back on another expense. Governments do not have this limitation. When legislators find they have spent too much or that there are new activities worth funding, they can raise taxes to make sure the budget balances and pass along the tough decisions to businesses, entrepreneurs, and families.

The Federal Earned Income Tax Credit (EITC) has helped single mothers escape poverty, but it has penalized married parents and is plagued by misunderstanding and fraud. A state EITC at five percent of the federal level would cost $66 million with the same problems but less impact. State tax credits should address problems in the federal tax code, such as the penalty against middle class parents who do not qualify for means-tested programs or against individuals who do not purchase health insurance through their employer. The state child tax credit addresses the former and a health insurance purchase tax credit would address the latter problem.