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

For Immediate Release
Jan. 12, 2023

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

League applauds governor, Legislature’s renewed push to boost Earned Income Tax Credit

Increasing Michigan’s EITC would help nearly 750,000 households make ends meet

LANSING—The Michigan League for Public Policy issued the following statement on Gov. Gretchen Whitmer’s announcement on boosting the Earned Income Tax Credit and on the House and Senate bills introduced today that call for an increase to the credit. It can be attributed to League President and CEO Monique Stanton.

“Here at the League, we’ve championed the state Earned Income Tax Credit for more than two decades. We worked on the Michigan EITC’s creation in 2006, and we have been laser focused on restoring and expanding the state credit since it was drastically cut in 2011,” said Monique Stanton, President and CEO of the Michigan League for Public Policy.

“The Michigan EITC is a transformative investment that reaches communities and districts all over the state, benefits rural and urban residents, and supports families—it helps nearly 750,000 households make ends meet. And it has a ripple effect because families use that credit to pay for groceries, car repairs, school supplies, child care and more—putting that money into small businesses and into our local communities. We also know that kids whose parents receive the credit are healthier, do better in school, and eventually earn more as adults.”

“Boosting the EITC truly is a win-win for our state, which is why policymakers, advocates, businesses and families from all walks of life and political backgrounds are pushing for this boost. Gov. Gretchen Whitmer has long championed expansion, and we applaud her and the new legislative leadership for making the EITC a priority for 2023. Both Republican and Democratic lawmakers announcing bills for expansion on their first day of session really is a testament to the bipartisan support that the EITC has had since it began. We hope House and Senate members know the power the EITC has for the people in their districts and will seize this opportunity to boost it to 30% of the federal credit.”

Background: 

House Bill 4002, sponsored by Rep. Nate Shannon, calls for restoration of the state EITC to 20% of the federal credit.

Senate Bill 3, sponsored by Sen. Kristen McDonald Rivet, calls for boosting the EITC incrementally to 30% of the federal credit.

In tax year 2019, about 738,380 families statewide received an average credit of $150, putting more than $110 million back into the local economy. Restoring the credit to 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.

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.