The Senate voted 30-5 to increase the state’s earned income tax credit by 42.8 percent to offset some the impact that a renewal of part of the state’s sales tax would have on the working poor.
The state’s earned income tax credit is 3.5 percent of the amount of a similar federal credit. Morrell’s bill would increase it to 5 percent.
However, his bill also would need to pass the House, which killed two similar bills in committee on Friday.
Increasing the tax credit would cost the state an estimated $21 million in revenue, making it a tough sell amid the state’s current budget crisis.
Read the story in KALB.