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

For Immediate Release
April 27, 2023

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

League applauds Senate passage of bill that would expedite Earned Income Tax Credit expansion  

Senate Bill 144 would make expansion of EITC effective in 2023, meaning more than 700,000 households could see funds as soon as summer

LANSING—The Michigan League for Public Policy issued the following statement on the Michigan Senate’s passage of Senate Bill 144, which would make the recent boost to the Earned Income Tax Credit (EITC) effective immediately upon signing. The bill comes on the heels of previous legislation that increased the state EITC from 6% to 30%, but did not take immediate effect. The statement below can be attributed to League President and CEO Monique Stanton.

“The League is enthusiastic about the Senate’s vote today to make critical tax relief for working families immediate. This past winter, we applauded the Legislature and Gov. Gretchen Whitmer for boosting the state Earned Income Tax Credit to 30% of the federal credit. They rectified the devastating cut that was made to the credit in 2011, and over 700,000 families will benefit—including 1 million children. It was a historic piece of legislation that truly centered people. Due to a technicality, though, the boosted credit will be delayed until 2024. But Michigan’s families and communities need relief now. Too many families are living paycheck to paycheck, and economic uncertainty continues to grow for Michiganders as the cost of basics like groceries, clothing and household goods remains high.

Today the Senate did right by working Michiganders, voting to make sure their money gets back in their pockets right away, rather than withholding it for another year. It’s a common-sense move that means the average family would see their tax credit grow from $150 to $749 this year, and would boost Michigan’s economy by more than $440 million annually. We hope the House sees how important it is to swiftly pass this bill and get these dollars to the people and communities they serve this year instead of waiting until 2024.”

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

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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.