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y?. <br /> r' <br /> burdens, which account for the majority of taxes paid by low-income earners. There was <br /> no action taken to enact a State version of the EITC, which could offset these taxes <br /> through the State income tax code. Seven states currently have versions of the EITC.' <br /> Child Care <br /> Both the State and Federal government have enacted income tax credits to compensate <br /> for the cost of child care and provide funds for child care for families formerly receiving <br /> welfare assistance. While the tax credits are not under discussion, the US House has <br /> acted to end the entitlement to child care programs and combine existing child care <br /> programs into a block grant at 1994 levels. The block grant will not provide additional <br /> funding as more families leave welfare to work. The US Senate has acted to set aside the <br /> 1994 level of child care funds and, in fact, provide for some growth in monies from this <br /> level over the next several years. However, the entitlement to those programs would also <br /> be eliminated. <br /> The State has not ignored the issue of child care. In both the North Carolina House and <br /> Senate welfare reform bills, there are provisions to extend transitional child care <br /> assistance for people leaving welfare beyond the current 12 month limit. However, such <br /> provisions may prove expensive if the Federal entitlement for these program ends. <br /> Although efforts have been made to make work pay, it remains difficult to work for a <br /> living in North Carolina. With one of the lowest average manufacturing wages in the <br /> nation and with the minimum wage at its second-lowest level (when adjusting for <br /> inflation) since 1955, the working poor face challenges in our state. The growing <br /> importance of low wage jobs, combined with a hodgepodge of eligibility requirements <br /> and regulations for programs, frustrate those who want to be self-reliant and those <br /> policymakers and organizations who want to help people be self-reliant. The State may <br /> do well to continue to explore options to make work pay and to better prepare its citizens <br /> for a global economy. Substantial reductions in benefits will not help North Carolina <br /> prosper in the long run. <br />