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

For Immediate Release
Jan. 26, 2023

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

League praises Bipartisan House passage of EITC bill 

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 House of Representatives’ bipartisan passage of House Bill 4002, sponsored by Rep. Nate Shannon, 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 bill passed with an overwhelming majority, and came hours after the Senate passage of Senate Bill 3, sponsored by Sen. Kristen McDonald Rivet, which contains the same provisions. The statement can be attributed to League President and CEO Monique Stanton.

“We applaud the House for taking swift action to pass this bill, which is a huge win for hard-working Michiganders. Boosting the EITC to 30% of the federal credit 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. 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. Plus, 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 along with lawmakers on both sides of the aisle and hundreds of advocates around the state to make this boost a reality. We’re thankful for Rep. Nate Shannon, Sen. Kristen McDonald Rivet and legislative leadership for championing this important issue. 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. The legislature 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.