Tax credit; earned income.
The proposed changes under HB 2369 will directly enhance the economic landscape for low-income taxpayers by providing a straightforward incentive through an earned income tax credit. This credit could potentially lead to an increased disposable income for vulnerable populations, thus stimulating local economies. Furthermore, the bill mandates that the Arizona Department of Revenue provides necessary claim forms with income tax returns, aiming to make the process more accessible for eligible claimants.
House Bill 2369 aims to amend Arizona tax statutes relevant to individual income tax credits. The bill specifically introduces a new section, 43-1073.02, which provides an earned income tax credit for individuals who qualify based on the federal standards set forth in section 32 of the Internal Revenue Code. The credit offered under this new provision is calculated as five percent of the taxpayer's federal earned income tax credit for the taxable year. This legislative approach is designed to alleviate the financial burden on low-income individuals and families in the state of Arizona.
While supporters of HB 2369 argue that the measure addresses pressing economic disparities, some concerns have been raised regarding the sustainability of such tax credits and their long-term implications on state revenue. Critics may question the effectiveness of this approach in achieving intended economic relief, with discussions likely revolving around the adequacy of funding required to support the program and whether it provides sufficient benefits for low-income families as intended.