In Earned Income Tax Credit, News Releases, Tax and Budget

For Immediate Release
Jan. 26, 2023

Contact:
Laura Ross
lauramr@mlpp.org
517-281-1084

Senate passage of EITC bill shows strong commitment to Michigan’s hardworking families

Boosting EITC to 30% of federal credit means nearly 730,000 households, 1 million children will see big relief at tax time

LANSING—The Michigan League for Public Policy issued the following statement on the Michigan Senate’s passage of  Senate Bill 3, sponsored by Sen. Kristen McDonald Rivet, to increase the state Earned Income Tax Credit (EITC) to 30% of the federal credit and make the increase retroactive to tax year 2022. The statement can be attributed to League President and CEO Monique Stanton.

“Today, leaders in Lansing worked collectively and put people first, and we’re celebrating this major win. Boosting the EITC to 30% of the federal credit means $750 on average. That could pay for a month of healthcare for a family, nine months of diapers, ten months of internet. And making the credit retroactive means families can get those funds now, as prices on household goods continue to rise, rather than waiting a full tax year. And Michiganders spend their credits at local businesses, keeping money flowing through our towns and cities and strengthening the economy.”

The League and our partners are celebrating today—we’ve worked for over a decade to make this boost a reality. We’re thankful for leadership from Sen. Kristen MacDonald Rivet, Senate Majority Leader Winnie Brinks, and Senate Housing and Human Services Committee Chair Jeff Irwin. Because of them, the years of bipartisan support from lawmakers, and a coalition of nearly 250 organizations, the Legislature is finally making moves to rectify the devastating cut that was made to the credit in 2011, which made Michigan’s EITC one of the lowest in the country. This is what policymaking should look like. Lawmakers on both sides of the aisle decided to put their constituents first today, and it’s a win-win for Michigan’s communities.” 

Useful Links:

Statewide fact sheet showing the impact of the EITC at 6%, 20% and 30% of the federal credit

County-specific fact sheets showing the local impact of the EITC at 6%, 20% and 30% of the federal credit

League 2024 Earned Income Tax Budget Priority Data Sheet

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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 use data to educate, advocate and fight for policy solutions that undo historic and systemic racial and economic inequities to lift up Michiganders who have been left out of prosperity. It is the only state-level organization that addresses poverty in a comprehensive way.