— LEAGUE RECOMMENDATION —
Restore the state’s Earned Income Tax Credit (EITC), incrementally increasing it to its former level of 20% of the federal credit, to help families keep working, take steps toward self-sufficiency and put money back into the local economy.
BACKGROUND: Michigan, along with 25 other states and the District of Columbia, supplements the federal EITC to provide a state credit. However, Michigan’s credit, at 6% of the federal credit, is one of the weakest state credits nationwide. As recently as 2011, taxpayers were allowed to claim a credit equal to 20% of their federal EITCs.
In 2015, nearly 757,000 Michigan families, raising over 1 million children, received a state EITC at an average of $145, with families raising at least two children seeing a bigger benefit. Had the credit been what it was in 2011, these same families would have seen an average of $337 more.
WHY IT MATTERS:
- The EITC is a proven-effective anti-poverty tool. The EITC is targeted to people with low to moderate incomes. In Michigan, the average income of an EITC recipient in 2015 was $18,404. Of the families receiving the EITC, more than 419,500 fell at or below the poverty level based on income in 2015. Over 90,000 Michigan taxpayers were pulled above poverty by the combined effects of the federal and state EITC; the state EITC alone pulled more than 6,550 of those above poverty. However, at its height, a state EITC equal to 20% of the federal credit pulled over 22,000 Michigan taxpayers out of poverty.
- The EITC rewards work and helps keep people working, spurring local economies. The EITC is only available to people who have earned income—that is people who work or who are self-employed. Recipients also tend to use the credit for things that help keep them working—like transportation costs or child care—or daily necessities. Because the credit is refundable, this is money that is spent in the local economies that without the EITC likely would not be spent. In 2015, up to $109.5 million was put back into local economies by virtue of the EITC.
- The EITC has long-lasting positive impacts on the lives of children, and helps them into adulthood. In addition to helping pull families, including children, above poverty, the EITC also helps improve child health from the start—by improving maternal health and prenatal care and reducing low-birthweight and premature births. The EITC also helps children do better and go farther in school and ultimately increases the chances of being able to attend and/or afford college. Children in families receiving the EITC also go on to make more as adults.
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. 
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.
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.
Jacob Kaplan 
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. 
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.
Donald Stuckey 
Patrick Schaefer
Alexandra Stamm 
Amari Fuller
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.
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.
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.
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.
