Make the earned income tax credit partially refundable
Impact
The impact of HB39 is significant for eligible individuals and families across Ohio. It would potentially increase the financial relief available to taxpayers who qualify for the earned income tax credit, facilitating greater economic stability for lower-income households. This legislation seeks to encourage work and improve the economic conditions of constituents who are often underserved and may struggle to meet basic living expenses.
Summary
House Bill 39 aims to amend sections 5747.71 and 5747.98 of the Ohio Revised Code to make the earned income tax credit partially refundable. Currently, this credit helps low- to moderate-income families and individuals by reducing their tax burden, particularly for those who may not have a significant tax liability. The proposed change would allow individuals to receive a refund if the credit exceeds their tax due, which could provide essential financial support to those who need it the most.
Conclusion
Overall, HB39 represents a legislative effort to bolster economic support for low- and moderate-income families in Ohio. By making the earned income tax credit partially refundable, the bill aims to enhance the financial resilience of these households, facilitating their ability to work and improve their socioeconomic status.
Contention
While the bill is aimed at expanding essential support for taxpayers, it may face opposition regarding its fiscal implications. Critics could argue that increasing the refundability of the credit may place additional strain on the state's budget, raising concerns about long-term sustainability. Legislators may debate the allocation of state funds and the potential trade-offs involved in expanding tax credits versus other areas of budget spending.