A joint resolution urging the congress of the united states to make certain temporary federal tax credit changes permanent, as recommended by the joint legislative study commission on poverty reduction and economic recovery.
Whereas, the current economic recession disproportionately affects low‑ and moderate‑income working families and low‑wage workers; and
Whereas, the American Recovery and Reinvestment Act expanded certain tax credits in 2009, thereby benefiting hundreds of thousands of North Carolina's low‑ and moderate‑income families; and
Whereas, the expanded tax benefits included enhancements to the earned income tax credit, the child tax credit, and the American opportunity tax credit; and
Whereas, Congress enacted the earned income tax credit in 1975 and, through various expansions, lifted approximately 6.6 million Americans, including 3.3 million children, out of poverty in 2009; and
Whereas, more than 825,000 North Carolina families benefit from the federal earned income tax credit; and
Whereas, Congress created the child tax credit in 1997 to help families meet the costs of raising children and expanded the credit in 2009 to reach many low‑income working families; and
Whereas, the earned income tax credit and the child tax credit offer low‑ and moderate‑wealth individuals and parents an incentive to seek work and higher wages and are the largest and most effective federal antipoverty programs, collectively reducing the overall poverty rate by 20% and the child poverty rate by 33% in 2009; and
Whereas, the American opportunity tax credit was expanded by Congress to provide education benefits for the first time to 3.8 million low‑ and moderate‑income college students and is one of the best long‑term investments to expand the skills of unemployed workers and to enable low‑ and moderate‑income prospective students to enroll in college; and
Whereas, these enhanced tax credits are scheduled to expire in 2011 without Congressional action, thereby reducing or eliminating the credit for millions of low‑ or moderate‑wealth children, individuals, and families at a time of increased financial hardship; Now, therefore,
Be it resolved by the Senate, the House of Representatives concurring:
SECTION 1.  The General Assembly of North Carolina urges the members of the Congress of the United States from North Carolina to support the introduction and passage of legislation making the enhancements to the earned income tax credit, the child tax credit, and the American opportunity tax credit permanent.
SECTION 2.  The General Assembly of North Carolina urges Congress to pass the legislation making the enhancement of the tax credits permanent.
SECTION 3.  This resolution is effective upon ratification.