SALT LAKE CITY — A bill to establish a state-level earned income tax credit advanced to a final reading in the Utah Senate by one vote Thursday.
SB211, sponsored by Sen. Ben McAdams, D-Salt Lake, would create a Utah tax credit for certain people who work and have low wages. The federal government extends such a credit, which reduces the earners' tax burden. Some people also receive refunds.
McAdams said the EITC is "fiscally conservative policy to reduce poverty."
Sen. Curt Bramble, R-Provo, spoke in favor of the bill noting the EITC incentivizes "work not welfare."
McAdams acknowledged that the tax credit would cost the state about $20 million, money the state does not have this year. Still, he wants to launch a conversation regarding the benefit of the credit, which enables poor, working people to retain more of the income they have earned.