HCS HB 5, 1 & 2 -- FEDERAL INCOME TAX DEDUCTION SPONSOR: Kennedy COMMITTEE ACTION: Voted "do pass" by the Committee on Ways and Means by a vote of 14 to 0. This substitute exempts from state individual income tax any federal income tax advanced refund or subsequent credit in lieu of an advanced refund received by a taxpayer under section 6428(e) of the Internal Revenue Code. (The section pertains to tax year 2001.) The substitute contains an emergency clause. FISCAL NOTE: Estimated Net Cost to General Revenue Fund of $33,687,672 in FY 2002, $0 in FY 2003, and $0 in FY 2004. PROPONENTS: Supporters say that the additional deduction will help individual taxpayers pay necessary bills and will also help "jump-start" the economy by increasing retail sales. Individuals may also consider donating all or a portion of their advanced payment or Missouri deduction amount to charity. Testifying for the bills were Representatives Kennedy, Froelker, Secrest, and Hegeman; and Missouri Chamber of Commerce. OPPONENTS: There was no opposition voiced to the committee. Bill Tucker, Assistant Director of ResearchCopyright (c) Missouri House of Representatives