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

For Immediate Release
Feb. 16, 2023

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

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

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 House Bill 4001, which includes legislation that will increase the state Earned Income Tax Credit (EITC) from 6% to 30% of the federal tax credit for working families. The statement can be attributed to League President and CEO Monique Stanton.

“Boosting the EITC to 30% of the federal credit is a huge win for Michigan families. It means $750 on average for families struggling to make ends meet due to low wages. That could pay for a month of healthcare for a family, nine months of diapers, ten months of internet. Plus, Michiganders spend their credits at local businesses, keeping money flowing through our towns and cities and strengthening the economy.”

“Today’s vote comes after many years of efforts to expand the EITC—The Michigan League for Public Policy has worked for over a decade along with lawmakers on both sides of the aisle and hundreds of advocates around the state to make this boost a reality. 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. We’re thankful that legislative leadership  championed this important issue.”

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.

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