With your help, we’ve made big strides this year on two of our top legislative priorities to help Missourians makes ends meet and build a stronger Missouri.
Alleviating Poverty & Providing a Pathway to the Middle Class: The Earned Income Tax Credit (EITC)
A state level EITC would give hundreds of thousands of hardworking Missouri families a much-needed boost to their income, helping them to make ends meet and build toward the middle class, while also stimulating local economies.
House Bill 1605 (sponsored by Representative Kelley) and Senate Bill 1018 (sponsored by Senator Schmitt) would have created a Missouri EITC, building on the benefits of the federal credit by providing a modest state tax credit to families with modest incomes. EITCs help families meet basic needs in the short-term, and increase educational attainment and health outcomes for families in the long run.
Support for a Missouri EITC grew considerably this year, with your help. An array of business and civic leaders joined with us in moving the issue, raising lawmaker awareness of the many benefits of a state EITC. As a result, the issue has attained strong, bipartisan support, and the bills advanced farther than ever before. The House approved House Bill 1605 by a vote of 115-35, a huge margin! Though the bills did not cross the finish line this year, the significant advancement of the issue coupled with diverse and growing public support, gives us lots of momentum for the next legislative session.
Investing in Missouri with Streamlined:
A proposal that would allow Missouri to begin to automatically collect sales tax that is due for retail purchases made through online stores was approved by the Senate Ways & Means Committee this year. This marks the first time that the issue has received a nod from a Senate Committee.
Senate Bill 795 (sponsored by Senator Wallingford) would close an existing loophole in Missouri’s tax code. Upon the passage of both the state and companion federal measure, Missouri would realize as much as $358 million per year in currently uncollected state and local sales tax. As a result, not only would the bill level the playing field for Missouri’s bricks and mortar retailers and their online competitors, it would allow the state to capture revenue that can be used to strengthen local schools, increase access to child care assistance, and invest in the health and mental health services that help families succeed.
The growing, bipartisan support for this measure also sets the stage nicely for the next legislative session.
Help us Keep the Momentum Going!
We’re not stopping here. To build on the support gained this year, we’ll be conducting outreach to generate even more supporters over the summer and fall. And we need your help to be successful!
Do you know a community organization, business or coalition that would add their support for these issues? Please share the following links with them so that they can join our efforts:
MBP is always happy to provide presentations at community groups or meetings on these (and other) issues. Click here to request a presentation.
Finally, please consider a financial contribution to the Missouri Budget Project. Your support will help us to keep sustain our outreach on these and other critical policy issues this summer and fall. Click here to make a donation, or mail a contribution to:
One Campbell Plaza
Suite 101, Building A, Center Entrance
St. Louis, MO 63139