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EARNED INCOME TAX CREDIT (EITC) <br /> • Program started in 1975 to encourage work and <br /> to offset payroll taxes for low-income people; <br /> • Historically has enjoyed bipartisan support, <br /> with expansions of the program under <br /> Presidents Reagan, Bush and Clinton; <br /> • In 1995, over 650,000 North Carolinians <br /> earning under $30,000 each year received $545 <br /> million in benefits from this credit; <br /> • The House Ways & Means Committee has acted <br /> to reduce the credit for families earning <br /> between $11,000 and $27,000 each year, for <br /> families receiving child support or Social <br /> Security and to eliminate the credit for childless <br /> low-income individuals; <br /> • Proposals are pending in the Senate to enact the <br /> provisions of the House bill and to stop the <br /> adjustment for inflation; <br /> • Would result in tax increases for the working <br /> poor (about 200,000 North Carolina families) <br /> NC Budget & Tax Center <br /> 11/6/95 <br />