The Michigan Earned Income Tax Credit (EITC) is a tax credit for workers and families with low incomes to help them meet basic spending needs. Michigan’s current EITC—at just 6% of the federal credit—provides help to working families struggling to make ends meet by boosting after-tax incomes. The EITC pulls Michigan families above the poverty line and reduces inequality. In tax year 2019, about 738,380 families statewide received an average credit of $150, putting more than $110 million back into the Michigan economy.

But the EITC should do more. Restoring the credit to its 2011 level (20% of the federal credit) would bring Michigan up to speed with other states. And increasing Michigan’s EITC to 30% of the federal credit would mean an average credit of $749 for these families, which they can use to stay current on bills or afford a car repair. Improving the EITC is a common-sense strategy to boost families, communities, and the economy.

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