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AB 398 would set $300 minimum CalEITC; committee placed measure on suspense file after sponsor testimony
Summary
AB 398, introduced by Assemblymember Aarons, would create a minimum $300 refundable California Earned Income Tax Credit (CalEITC) for qualifying filers; the committee designated it a suspense candidate and heard witness testimony on expected beneficiaries and estimated initial-year cost.
Assemblymember Aarons presented AB 398, a proposal to establish a minimum refundable benefit of $300 for the California Earned Income Tax Credit (CalEITC) for eligible tax filers. The sponsor and coalition witnesses said many current CalEITC claimants receive very small amounts; a $300 floor would produce a more meaningful refund and encourage filing among low-income workers.
United Way California Capital Region and coalition partners presented testimony and cited filing assistance experience and tax-refund totals. Witnesses described recent filing season results and local VITA (Volunteer Income Tax Assistance) program impacts, and provided estimates for the bill's initial fiscal cost; the sponsor or witnesses cited an estimate of about $225 million in the first year of implementation.
Committee members asked about fiscal impacts and eligibility, and one member noted concerns about the broader causes of high costs of living. The author emphasized that the measure returns hard-earned taxpayer dollars to working families and sought an "aye" vote; the committee designated AB 398 a suspense-file measure for fiscal review.
