A version of this column originally appeared in Michigan Advance.
The U.S. House passed the Build Back Better bill Friday morning, and there’s much to applaud in this legislation. On top of providing needed help to families struggling to meet everyday challenges like paying rent and putting food on the table, affording child care and preschool, or paying for college, early estimates also suggest the vast majority of Michigan residents will see a tax break if Build Back Better (BBB) becomes law.
Source: Joint Committee on Taxation
BBB extends many of the most needed policies first introduced through the American Rescue Plan Act in the wake of COVID-19, including the Earned Income Tax Credit (EITC) expansion. The American Rescue Plan tripled the credit for workers without children and also extended the credit to reach more working adults — lowering the minimum age from 25 to 19 and eliminating the maximum age of 65. These changes will provide a tax cut of up to $1,500 for 571,000 low-wage workers in Michigan alone.
BBB also extends the Child Tax Credit (CTC) expansion, providing a monthly credit of $300 for each child under 6 years old and $250 for each child under 18. Most importantly, BBB makes the CTC permanently refundable, a move that will benefit the families with the lowest incomes who otherwise may not receive the full credit. We have already seen the huge impacts of the expansion this year — state data shows 9 in 10 Michigan families with low incomes are using monthly CTC payments to pay for necessities and education expenses.
Source: Center on Budget and Policy Priorities analysis of Household Survey data
Tax credits like these will not only help reduce poverty, but will also begin to address racial disparities in income and wealth. While expanding the CTC will benefit children from all racial and ethnic backgrounds, poverty amongst Black children specifically would be cut in half.
Source: Urban Institute
At the same time, the Joint Committee on Taxation estimates BBB will reduce deficits and be paid for by requiring our wealthy corporations and high-income earners pay a fairer share of taxes. While the framework includes several new provisions, three in particular stand out:
- A corporate alternative minimum tax of 15% will ensure highly profitable companies are not using loopholes or accounting maneuvers to cancel out their tax liability, as we recently learned is so common. This is by far the biggest revenue raiser in this bill, anticipated to bring in $318 billion over 10 years.
- Additional allocations to the IRS will help ramp up enforcement and guarantee businesses, particularly pass-through entities, pay their fair share of taxes. Increased tax compliance is expected to bring in an estimated $1.41 billion in unpaid or underpaid taxes.
- A 5% surtax on household income above $10 million and an additional 3% on household income above $25 million will improve tax fairness by asking more of high net wealth individuals. While many high net wealth individuals face limited or no tax liability, because unrealized capital gains go untaxed, this is a starting point to creating a more equitable system while also raising $227 billion in revenue.
BBB will overwhelmingly bring positive changes and increased fairness to our tax code. Taken all together, Build Back Better lifts up Michigan families most in need while responsibly funding our priorities by making the tax system more equitable.
We at the Michigan League for Public Policy applaud the House for passing this legislation and urge the U.S. Senate to take swift action to enact Build Back Better and help families meet everyday challenges.
Jay Cutler joined the League in March 2026 as the Kids Count Senior Data Analyst, where he collects, analyzes, and prepares data for Kids Count in Michigan.
Danielle Taylor-Basemore joined the League as the Development Data and Stewardship Coordinator in June 2025. She brings with her five years of nonprofit experience with a special focus on community engagement, data visualization and strategic programming. Prior to joining the League, Danielle served as the Business District, Safety, and Digital Manager at Jefferson East, Inc.
Scott Preston is a Senior Policy Analyst with the Michigan League for Public Policy, where he leads the organization’s immigration and criminal justice reform portfolios. In the three years prior to joining the League, Scott facilitated the Southeast Michigan Refugee Collaborative and managed a small business economic development program at Global Detroit. His work included launching Michigan’s first Refugee Film Festival and building on a trusted connector model that linked marginalized communities with crucial resources. Scott’s work at the League is informed by his background in journalism and research. He spent four years covering the Syrian refugee crisis in the Middle East for publications such as The Economist, and later worked with unaccompanied refugee minors through Samaritas. Scott holds a master’s degree in international migration and public policy from the London School of Economics and Political Science.
Kate Powers joined the League as the Chief Development Officer in February 2025. Prior to joining the League, Kate held leadership positions at many Michigan nonprofit organizations, most recently serving as the COO and Chief Development Officer of Ele’s Place. Kate has spent the bulk of her career in fundraising, with a short stint in the state Legislature as a legislative aide to members in both chambers. Kate is a graduate of Michigan State University’s James Madison College with a Bachelor of Arts in Social Relations and has a certificate in fundraising management from the Lilly Family School of Philanthropy at Indiana University. Additionally, Kate served on the East Lansing Public Schools Board of Education and is a past President of the Junior League of Lansing. In her free time, she enjoys traveling with her husband and her son and saving outfit of the day and home decor ideas on Pinterest. 
Nicholas Hess joined the League as the Fiscal Policy Analyst in September of 2024. In this role, Nicholas focuses on tax policy, government revenue, and their impact on working families and racial equity, including the effects of the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC). Nicholas values the role that judicious fiscal policy can play in the improvement of people’s lives and the economy, alleviating inequities along the way.
Audrey Matusz joined the League as the Visual Communications Specialist in September 2024. She supports the team with implementing social media strategies and brainstorming creative ways to talk about public policy. She brings with her nearly a decade of experience in producing digital products for evidence-based social justice initiatives. 
Jacob Kaplan 
Donald Stuckey 
Alexandra Stamm 
Amari Fuller
Mikell Frey is a communications professional with a passion for using the art of storytelling to positively impact lives. She strongly believes that positive social change can be inspired by the sharing of data-driven information coupled with the unique perspectives of people from all walks of life across Michigan, especially those who have faced extraordinary barriers. 
Yona Isaacs (she/hers) is an Early Childhood Data Analyst for the Kids Count project. After earning her Bachelor of Science in Biopsychology, Cognition, and Neuroscience at the University of Michigan, she began her career as a research coordinator in pediatric psychiatry using data to understand the impacts of brain activity and genetics on children’s behavior and mental health symptoms. This work prompted an interest in exploring social determinants of health and the role of policy in promoting equitable opportunities for all children, families, and communities. She returned to the University of Michigan to complete her Masters in Social Work focused on Social Policy and Evaluation, during which she interned with the ACLU of Michigan’s policy and legislative team and assisted local nonprofit organizations in creating data and evaluation metrics. She currently serves as a coordinator for the Michigan Center for Youth Justice on a project aiming to increase placement options and enhance cultural competency within the juvenile justice system for LGBTQIA+ youth. Yona is eager to put her data skills to work at the League in support of data-driven policies that advocate for equitable access to healthcare, education, economic security, and opportunity for 0-5 year old children. In her free time, she enjoys tackling DIY house projects and trying new outdoor activities with her dog.
Rachel Richards rejoined the League in December 2020 as the Fiscal Policy Director working on state budget and tax policies. Prior to returning to the League, she served as the Director of Legislative Affairs for the Michigan Department of Treasury, the tax policy analyst and Legislative Director for the Michigan League for Public Policy, and a policy analyst and the Appropriations Coordinator for the Democratic Caucus of the Michigan House of Representatives. She brings with her over a decade of experience in policies focused on economic opportunity, including workforce issues, tax, and state budget.
Simon Marshall-Shah joined the Michigan League for Public Policy as a State Policy Fellow in August 2019. His work focuses on state policy as it relates to the budget, immigration, health care and other League policy priorities. Before joining the League, he worked in Washington, D.C. at the Association for Community Affiliated Plans (ACAP), providing federal policy and advocacy support to nonprofit, Medicaid health plans (Safety Net Health Plans) related to the ACA Marketplaces as well as Quality & Operations.
Renell Weathers, Michigan League for Public Policy (MLPP) Community Engagement Consultant. As community engagement consultant, Renell works with organizations throughout the state in connecting the impact of budget and tax policies to their communities. She is motivated by the belief that all children and adults deserve the opportunity to achieve their dreams regardless of race, ethnicity, religion or economic class.
Emily Jorgensen joined the Michigan League for Public Policy in July 2019. She deeply cares about the well-being of individuals and families and has a great love for Michigan. She is grateful that her position at the League enables her to combine these passions and work to help promote policies that will lead to better opportunities and security for all Michiganders.
Megan Farnsworth joined the League’s staff in December 2022 as Executive Assistant. Megan is driven by work that is personally fulfilling, and feels honored to help support the work of an organization that pushes for more robust programming and opportunities for the residents of our state. She’s excited and motivated to gain overarching knowledge of the policies and agendas that the League supports.
