In News Releases

For Immediate Release
May 25, 2022

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

Bipartisan effort to increase EITC continues with second Senate Finance Committee hearing
Experts and advocates emphasize integrity and impact/importance of credit

LANSING—The Michigan League for Public Policy issued the following statement on the Michigan Senate Finance Committee’s hearing today on Senate Bill 417, sponsored by Sen. Wayne Schmidt, to increase the state Earned Income Tax Credit (EITC) to 30% of the federal credit. The statement can be attributed to League President and CEO Monique Stanton.

“The bipartisan and cross-sector effort to increase the Michigan EITC took another important step forward today with the Senate Finance Committee’s second hearing on SB 417. Officials from the Department of Treasury, former State Treasurer Nick Khouri, and expert accountants and tax preparers all emphasized the integrity of the EITC and the impact it has on individual families and the economy. The Michigan Chamber of Commerce joined the growing list of nearly 100 organizations and advocacy groups of all stripes calling for an increase of the state EITC to 30%. The external appetite for an EITC increase keeps growing, as does the momentum in the Capitol, and the proposal continues to be the only tangible tax change being embraced on both sides of the aisle. As policymakers continue to look for the most beneficial ways to invest historic state revenues, increasing the EITC will benefit working families, small businesses and local economies.”

The Michigan League for Public Policy has been a long-standing supporter of the Michigan EITC, from the credit’s bipartisan creation in 2006, its important defense in 2011, and its proposed expansion in subsequent years to supporting SB 417 at today’s hearing. The League submitted written testimony on the legislation before the committee, including the following excerpt:

“Michigan’s EITC lets low-paid workers and their families keep more of what they earn so they can afford basic necessities. But at a rate of only 6% of the federal credit, Michigan’s EITC is among the lowest in the nation, and it is not doing enough to meet the needs of families who are struggling to get ahead as prices continue to rise on essentials like groceries, gas, and infant formula.”

“Increasing the EITC to 30% will put an additional $443 million into the hands of workers and families with the greatest need–Black, Brown and White; rural and urban–and support the communities where they work and live. Michiganders spend their credits at local businesses, keeping money flowing through our towns and cities and contributing to a thriving economy. An increase to 30% of the federal credit would mean an average credit of $750 for eligible families, which could pay for one month of healthcare for a family of four, nine months of diapers or ten months of internet access.”

Full testimony is available here.

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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.