Democrats aim to provide tax relief for more working families

State Reps. Kemp Strickler, D-Lee's Summit (left) and Stephanie Hein, D-Springfield (right)

JEFFERSON CITY, Mo. – Democratic state Reps. Stephanie Hein and Kemp Strickler, of Springfield and Lee’s Summit respectively, on Wednesday filed House Bills 1478 and 1479, each of which proposes making the Missouri Working Families Tax Credit refundable.

This change will allow eligible working Missourians to collect the benefit of the MWFTC through a state refund in the event their credit is larger than their liability. In short, under this provision, families will benefit from this important tax credit whether they owe state taxes or not.

"Our current tax rules make life harder for working families. We need to fix these rules to make things fair and help those families more,” said Hein.

According to the Institute on Taxation and Economic Policy, a Missouri Household earning $52,000 per year, would net $124 under the current version of the MWFTC. That same family would yield $325 under a refundable credit program.

“Given that both sides of the aisle have promised to lower costs for Missouri families, we hope the Republican supermajority will recognize this change would benefit Missouri families, Missouri workers and Missouri’s economy,” said Strickler. “We feel this should be a higher priority than the Republican proposals which focus primarily on reducing taxes for corporations and for the people in the upper income brackets.”

This policy proposal would also provide a great return on investment compared to the proposals being offered by the Republican majority, from which we’ve seen fiscal notes in the billions of dollars. Such a move would inevitably require funding cuts to education, mental health, veteran programs, accommodation for those with disabilities, and so many other essential services.

Each dollar of this tax credit represents an investment into the hard-working people of Missouri, which remains arguably the safest and most economically stimulative investment for Missouri tax dollars.

Rep. Hein serves on the House Budget Committee, and Rep. Strickler serves on the Special Committee on Tax Reform in the 103rd General Assembly.