Targeted tax credits benefit people with the lowest incomes, but slashing income taxes skews benefits to the rich

Average tax cut as a percent of annual income by income group in North Carolina, 2023

Proposed EITC would provide a credit worth 20% of the federal credit. Proposed CTC would provide families with low and moderate incomes with $250 or $125 based on their adjusted gross income. Income groups in this chart reflect total income and so may be higher than adjusted gross income. Many but not all households would be eligible for both credits.
Chart: NC Budget & Tax Center Source: Institute for Taxation and Economic Policy analysis of impact of tax policies. Get the data