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Senate debates earned-income tax credit but tables HB57 over fiscal concerns
Summary
Lawmakers debated House Bill 57, which would establish a state earned-income tax credit tied to the federal EITC, but tabled it on third reading because of a delayed fiscal note estimated at about $6 million and open policy questions about entitlement growth.
Senators debated House Bill 57, a proposal to create a Utah-earned income tax credit tied to the federal Earned Income Tax Credit. Sponsor Senator Vickers described the measure as a modest refundable credit intended to help families experiencing intergenerational poverty, but acknowledged a delayed fiscal note of roughly $6 million and delayed implementation to 2020.
Supporters, including Senator Thatcher, argued the credit could help break cycles of poverty and save state costs over time by reducing dependency on other programs. Opponents cautioned that the credit creates a new entitlement that could grow and urged careful consideration before establishing a refundable program, calling it a "new welfare program." Senator Hilliard asked whether the bill would be refundable; the sponsor confirmed it is drafted as a refundable credit tied to federal earned-income-eligibility rules.
Given the fiscal uncertainty, the sponsor moved to table HB57 on third reading to allow further consideration alongside tax-package deliberations; the motion to table carried, and the bill was deferred for future action.
