Missouri Budget Project: Sales Taxes on Groceries & the Importance of a Refundable EITC

A state Earned Income Tax Credit (EITC), like the recently proposed Missouri Working Families Credit, could benefit as many as 515,000 working families with modest wages, providing hardworking families the ability to achieve a better future and a pathway to the middle class. By making the credit refundable, like the federal EITC and most other state credits, Missouri can maximize its benefit, reducing the amount of state income and sales taxes paid by working families with low wages, thereby helping those families afford the basics like groceries and child care.

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