The House Ways and Means Committee heard HB 291, a bill sponsored by Rep. Bill Kidd (R-Buckner), that would allow low-income Missouri citizens that qualify for the federal earned income tax credit to claim a similar Missouri tax credit amounting to 20 percent of the federal amount. In presenting the bill, Rep. Kidd remarked that a state earned income tax credit would assist the working poor by giving them a tax cut. The tax credit proposed would only be available if the taxpayer had Missouri tax liability and would not be refundable, which some experts say is important to making this kind of tax credit program most effective. The bill did not draw any opposition, but is estimated to cost the state between $40 and $65 million, a fact that will make the bill difficult to pass in a tight budget year. The MCC testified in support of the bill and will report on its progress as the session unfolds.
February 18, 2019 - 8:17am