Statement by the North Carolina Democratic Party: New Report by National Economic Council Shows Extending Middle Class Tax Cuts Will Prevent Hardworking North Carolina's Families from Taking a Serious Economic Hit
RALEIGH - The NCDP released the following statement today on state-by-state reports issued by the National Economic Council of the White House, which show the direct impact that failing to extend the middle-class tax cuts will have on hardworking North Carolina families:
"Yesterday's report by the National Economic Council is a critical reminder of what's on the line for North Carolina's families if Congress fails to extend tax cuts for the middle class by the end of the year. According to the report, inaction by Congressional Republicans will result in 3.3 million middle class NC families seeing their federal income taxes increase - along with 98 percent of American families and 97% of small businesses.
More Specifically, a typical median-income family of four in North Carolina could see their taxes go up by $2,200 - with families receiving a reduced Child Tax Credit and 1,193,000 low-and moderate-income families with children losing access to the tax credit altogether, costing them an average of $1,010 per year. 300,000 middle class families across the state will no longer have the support they need to pay from college through the American Opportunity Tax Credit, and NC small business would only be able to claim immediate tax deductions for $25,000-as opposed to $250,000 - of new investments.
As President Obama has emphasized, this is not just about avoiding the looming fiscal cliff - it's about laying the foundation for the long-term economic growth of the middle class and reducing the deficit in a balanced, responsible way. While the President remains committed to working with both parties to reach a compromise that moves our country forward, there is simply no reason to hold the economic security of North Carolina's families hostage while we debate tax cuts for the wealthiest few. It's time for Republicans in Congress to come to the table and help extend the middle-class tax cuts without further delay."