Last year’s minimum wage law — which sparked a partisan, procedural showdown in Lame Duck — is set to increase the rate from $9.45 per hour to $12.05 per hour over the course of the next decade.
The Michigan League for Public Policy’s legislative coordinator, Rachel Richards, described the effect that the EITC has on everyday life for working-class residents of the state, even in its currently diminished form. Gov. Rick Snyder cut the tax credit from 20 percent to 6 percent as part of his 2011 tax overhaul, which also decreased the business tax rate.
“The state EITC has this additional boosting power, especially when it comes to poverty reduction,” Richards said. “Back when the EITC was at 20 percent of the federal level, it, alone, helped pull about 22,000 Michigan families out of poverty, and at its current rate it still really helps, pulling more than 6,500 taxpayers out of poverty.”
The authors of the study on suicides noted that lump payments like that given out through the EITC have especially strong effects on behavior, even pointing out that the effects they discovered in decreasing suicides are relatively larger in March, the month in which many residents receive their annual tax refund.
The study also says that raising the minimum wage has a more immediate effect on reducing the number of suicides in a given state, whereas hiking the EITC has a naturally occurring delay until the next tax season. May 17, 2019 – Michigan Advance