Leaders from the Detroit Regional Chamber, Michigan Chamber of Commerce and Michigan Future joined legislative leaders last week for a press conference at the Mackinac Policy Conference (MPC) to discuss the increase of the Michigan Earned Income Tax Credit (EITC).
Leaders from the Detroit Regional Chamber, Michigan Chamber of Commerce and Michigan Future joined legislative leaders last week for a press conference at the Mackinac Policy Conference (MPC) to discuss the increase of the Michigan Earned Income Tax Credit (EITC).
The press conference focused on the unprecedented support from business organizations for EITC expansion. Speakers shared the value of expanding the EITC and how it can support Michigan families.
“Research indicates that families mostly use the EITC to pay for necessities like repairing homes, maintaining vehicles that are needed for commuting to work and in some cases obtaining additional education or training to boost their employability and earning power,” Senator Wayne Schmidt said.
The EITC supports working families earning a maximum of $57,000 a year (if they have three children). This would be a significant tax cut for working families, helping 750,000 Michigan families and nearly one million children.
“We have a unique opportunity right now in Michigan to make a transformational and generational change in our state and we stand ready to work together to get this done,” Representative Donna Lasinski said.
CMF is partnering with Michigan Future, Michigan League for Public Policy and others in supporting the increase of the state EITC to 30%. More than 80 business, religious, service and policy groups around the state have come together to support a proposal to raise Michigan’s EITC.
The Michigan EITC Coalition is providing a way to get involved by signing an action statement to encourage Michigan leaders to support the expansion of the EITC.
The state EITC was enacted in 2006 and provides a refundable state income tax credit aimed at working families, with more funding going to families with more children.
As CMF reported, the state EITC was once 20% but was lowered to 6% in 2011. Michigan has one of the lowest percentages based on the federal credit.
In 2019, more than 730,000 working Michigan households raising nearly one million children received the credit.
Expanding Michigan’s EITC would inject an additional $460 million into the state’s economy, help fill jobs and boost small businesses.
Throughout the MPC, several CMF members joined conversations advocating for the expansion of the EITC.
Want more?
Watch the full press conference.
Read more about the EITC.
Learn more about taking action to support EITC expansion.
