Governor Calls for Income Tax Cut for Working Poor in Final State of the State Address

Governor Mike Easley said in his final State of the State address February 19 that his proposed 2007-2009 two-year budget would eliminate the state income tax for nearly 600,000 low-income people and halve it for another 650,000. The governor also announced the expansion of Learn and Earn high schools statewide, with the program allowing “students to earn a college associate’s degree with just one extra year of study. Families save thousands of dollars on education costs and the graduation rate goes up. My budget will include support to take Learn and Earn early college high school statewide,” the governor told lawmakers.

The governor also told legislators that “much has changed since 2001. Our economy is transitioning to newer and better jobs; our economic and business climate is ranked among the best in the nation...We are staying focused on creativity and innovation, and we are using smart and targeted investments....I ask you to fund that package again this year. At the same time, we will continue to fund our research institutions, build regional centers for promising new opportunities and give relief to small businesses.” The governor also discussed the importance of energy independence and said, “This year, working with the power companies, we will give you incentives; if you increase your energy efficiency we will decrease your power bill.” (Governor’s State of the State Address, February 19, 2007) (HMF/2/21/07)