Personal income tax: Earned Income Tax Credit.

CA AB398 aimed to amend the state's tax code to enhance the Earned Income Tax Credit (EITC), which provides financial assistance to low-income workers. The bill sought to increase the benefits available to eligible individuals and families, helping them keep more of their earnings. However, the bill ultimately did not pass in the legislature.

Supporters of CA AB398 argued that expanding the Earned Income Tax Credit would provide crucial financial relief to working families, helping to lift them out of poverty. They emphasized that this measure would encourage work and stimulate the economy by putting more money into the hands of those who need it most.

Critics of CA AB398 contended that the bill would place an additional financial burden on the state budget, potentially leading to higher taxes for all Californians. They argued that while the intention was good, the expansion of tax credits could create inefficiencies and reliance on government assistance rather than promoting self-sufficiency.