An Act Providing Cost-of-living Increases For Private Providers And Eliminating The Earned Income Tax Credit.
Impact
If enacted, this bill would have substantial implications for both the human services sector and the individuals who rely on these services. By restoring previously cut funding through the proposed increase, service providers would potentially stabilize operations and improve service delivery. Conversely, the removal of earned income tax credits could negatively affect low-income workers by reducing their disposable income, thereby sparking concerns about the bill's effects on personal taxation and financial health.
Summary
House Bill 05003 aims to provide a 5% cost-of-living increase for private service providers contracted by state agencies, thereby addressing funding challenges faced by these entities. The bill proposes to allocate necessary funds through adjustments within the state budget, specifically by eliminating the earned income tax credit. The measure reflects a response to prior budget cuts that impacted the financial viability of service providers in the human services sector.
Contention
There is likely to be debate surrounding this bill from various stakeholders. Proponents might highlight the necessity of supporting human service providers to ensure service continuity and quality, arguing that the cost-of-living increase is crucial for their sustainability. On the other hand, opponents could contest the elimination of the earned income tax credit, stressing that such a measure disproportionately harms lower-income individuals and families, suggesting that funding alternatives should be sought without penalizing the working class.
An Act Increasing The Highest Marginal Rate Of The Personal Income Tax And Establishing A Capital Gains Surcharge To Provide Funding For Certain Child-related, Municipal And Higher Education Initiatives.