In News Releases, Tax and Budget

For Immediate Release
Dec. 8, 2021

Contact:
Alex Rossman
arossman@mlpp.org
517-775-9053

League, array of supporters advocate for expansion of Michigan Earned Income Tax Credit

Senate Bill 417 to expand credit will benefit residents and families, local businesses, rural communities and people of color

LANSING—The Michigan League for Public Policy issued the following statement in support of Senate Bill 417 to increase the Michigan Earned Income Tax Credit (EITC) to 30% of the federal credit. The bill was up for discussion in the Senate Finance Committee today and a variety of groups spoke or submitted written testimony in support of the bill, including the League, the Small Business Association of Michigan and the Michigan Restaurant and Lodging Association. The statement can be attributed to League President and CEO Monique Stanton.

“The Earned Income Tax Credit is one of the best anti-poverty policies at our disposal and it has been one of the Michigan League for Public Policy’s long-standing policy priorities. On the Michigan EITC, we helped save the credit when it was almost eliminated and drastically slashed in 2011. We have continued to advocate for restoration of the credit—or improvements beyond—ever since, and we are excited to see the issue getting traction today. By putting money in the pockets of families with the highest need, Michiganders receiving the EITC tend to spend their refunds on immediate expenses, like groceries, child care, utilities, rent, car repairs and more, putting the money back into our local communities. And the credit has significant immediate and long-term benefits for families with children.

“Increasing the Michigan EITC to 30% will put an additional $443 million into the hands of Michiganders with the greatest need—families with children, people of color, and households in rural communities—and support their local economies. We are proud to join with the diverse group of supporters advocating for SB 417 today, and hope the legislation can be a bipartisan, bicameral priority to help Michigan residents and families during these tough times and beyond.”

ADDITIONAL INFORMATION:

February 2021: State, county fact sheets on Michigan EITC (Includes number of recipients in 2019, financial impact of restoring Michigan EITC to 20% of federal credit.)

Jan. 31, 2020: Groups promote impact, further potential of Earned Income Tax Credit

January 2019: Owner’s Manual for Michigan fact sheet on Michigan EITC

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The Michigan League for Public Policy, www.mlpp.org, is a nonprofit policy institute focused on opportunity for all. Its mission is to advance economic security, racial equity, health and well-being for all people in Michigan through policy change. It is the only state-level organization that addresses poverty in a comprehensive way.