HB 553 -- EARNED INCOME TAX CREDIT

CO-SPONSORS:  Riback Wilson, Carter, Boykins, Relford, Gunn,
Lakin, Troupe

COMMITTEE ACTION:  Voted "do pass" by the Committee on Ways and
Means by a vote of 16 to 2.

This bill allows a state individual income tax credit equal to
20% of any earned income tax credit claimed by the taxpayer on
the federal income tax return.  Any amount of credit which
exceeds the taxpayer's liability in any tax year will be
refunded to the taxpayer or carried forward into future tax
years.

This bill will become effective January 1, 2000.

FISCAL NOTE:  Estimated Net Loss to General Revenue Fund of $0
in FY 2000, $112,900,000 to $132,900,00 in FY 2001, and
$117,500,000 to $138,200,000 in FY 2002.

PROPONENTS:  Supporters say that this credit will benefit the
most needy families in our society and assist in the
transformation from welfare to work through incentive.

Testifying for the bill were Representative Riback Wilson;
Citizen's for Missouri Children; Legal Services; Missouri
Association of Social Welfare; Reform Organization for Welfare;
Service Employee's International Union; Lutheran Families; St.
Louis Earned Income Tax Credit Committee; and Missouri
Association for Community Action.

OPPONENTS:  There was no opposition voiced to the committee.

Bill Tucker, Assistant Director of Research

HB 553 -- Earned Income Tax Credit

Co-Sponsors:  Riback Wilson, Carter, Boykins, Relford, Gunn,
Lakin, Troupe

This bill allows a state individual income tax credit equal to
20% of any earned income tax credit claimed by the taxpayer on
the federal income tax return.  Any amount of credit which
exceeds the taxpayer's liability in any tax year will be
refunded to the taxpayer or carried forward into future tax
years.

This bill will become effective January 1, 2000.