For Immediate Release
July 26, 2016
Contact: Alex Rossman
arossman@mlpp.org
517.487.5436
New League analysis to examine income inequality, severe impact on women and workers of color
LANSING—Michigan has the 11th worst income gap in the nation according to a new fact sheet, Time to End Income Inequality, issued today by the Michigan League for Public Policy. The fact sheet shows that the top 1% of Michigan’s earners make 22 times more than the bottom 99%.
“Instead of moving Michigan forward, a majority of state policies have been pulling Michigan apart, most noticeably with the widening income gap,” said Karen Holcomb-Merrill, vice president of the Michigan League for Public Policy. “While our state’s economy has recovered for some, poverty is still a major issue for many others—including those with full-time jobs. We are all for financial success, but lawmakers must make sure our public policies are fair to all and helping those with the greatest need. Right now, they’re not.”
After relatively similar growth for all income levels for 30 years, the fact sheet shows that from 1979 to 2007, incomes for the top 1% of workers increased 100%—while the rest of workers experienced an income decline of .2%. That created a huge income gap in Michigan that continues today. The richest residents’ share of Michigan’s total income has also grown dramatically. In 1979, the top 1% of Michigan households held about 9% of the total income in the state. By 2013, the top group’s income share had nearly doubled to 17.9%, while the rest of Michigan residents saw their incomes decline.
Michigan women and people of color are particularly hurt by the gap, with Michigan ranking among the worst nationally in gender pay disparities. According to the most recent data, annual median earnings for full-time working women in Michigan are $12,738 less than men, with women making 74.6 cents on the dollar earned by men in 2014. The most recent wage data available by race shows that in 2012, workers of color made $3 less per hour than white workers, and that racial disparities are unrelated to a worker’s education. The League will be producing a series of fact sheets on income inequality to look at these issues closer.
“Income inequality is obviously a pocketbook issue, but low wages negatively affect workers and their families in so many ways,” Holcomb-Merrill said. “Low incomes hurt the financial standing of future generations. Lower-wage earners are also less likely to have employer-sponsored healthcare and paid sick and family leave, and have greater difficulty saving for their retirement or a child’s college education. Michigan’s kids, workers, neighborhoods and economy will all benefit from greater income equality.”
With the League’s focus on translating data into policy change, the fact sheet also outlines recommendations for state policymakers to reduce income inequality, including:
- Further raising the minimum wage or eliminating the tipped wage;
- Expanding access to high-quality child care;
- Enacting earned paid leave policies;
- Restoring Michigan’s Earned Income Tax Credit (EITC) to 20% of the federal credit;
- Expanding the Homestead Property Tax Credit;
- Implementing a fairer income tax, such as a graduated income tax, and other equitable tax changes (Michigan’s lowest income earners pay nearly double the rate in total state and local taxes of the top 1%);
- Improving K-12 education, especially for children at risk of educational failure;
- Increasing adult education; and
- Expanding access to post-secondary education.
The fact sheet utilizes national, state and local data recently released in a report by the Economic Policy Institute and Economic Analysis Research Network as well as income information from the Census’ American Community Survey and the National Equity Atlas.
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The Michigan League for Public Policy, www.mlpp.org, is a nonprofit policy institute focused on economic opportunity for all. It is the only state-level organization that addresses poverty in a comprehensive way.
Emily Jorgensen joined the Michigan League for Public Policy in July 2019. She deeply cares about the well-being of individuals and families and has a great love for Michigan. She is grateful that her position at the League enables her to combine these passions and work to help promote policies that will lead to better opportunities and security for all Michiganders.
Jacob Kaplan 
Mikell Frey is a communications professional with a passion for using the art of storytelling to positively impact lives. She strongly believes that positive social change can be inspired by the sharing of data-driven information coupled with the unique perspectives of people from all walks of life across Michigan, especially those who have faced extraordinary barriers. 
Rachel Richards rejoined the League in December 2020 as the Fiscal Policy Director working on state budget and tax policies. Prior to returning to the League, she served as the Director of Legislative Affairs for the Michigan Department of Treasury, the tax policy analyst and Legislative Director for the Michigan League for Public Policy, and a policy analyst and the Appropriations Coordinator for the Democratic Caucus of the Michigan House of Representatives. She brings with her over a decade of experience in policies focused on economic opportunity, including workforce issues, tax, and state budget.
Donald Stuckey 
Patrick Schaefer
Alexandra Stamm 
Amari Fuller
Renell Weathers, Michigan League for Public Policy (MLPP) Community Engagement Consultant. As community engagement consultant, Renell works with organizations throughout the state in connecting the impact of budget and tax policies to their communities. She is motivated by the belief that all children and adults deserve the opportunity to achieve their dreams regardless of race, ethnicity, religion or economic class.
Megan Farnsworth joined the League’s staff in December 2022 as Executive Assistant. Megan is driven by work that is personally fulfilling, and feels honored to help support the work of an organization that pushes for more robust programming and opportunities for the residents of our state. She’s excited and motivated to gain overarching knowledge of the policies and agendas that the League supports.
Yona Isaacs (she/hers) is an Early Childhood Data Analyst for the Kids Count project. After earning her Bachelor of Science in Biopsychology, Cognition, and Neuroscience at the University of Michigan, she began her career as a research coordinator in pediatric psychiatry using data to understand the impacts of brain activity and genetics on children’s behavior and mental health symptoms. This work prompted an interest in exploring social determinants of health and the role of policy in promoting equitable opportunities for all children, families, and communities. She returned to the University of Michigan to complete her Masters in Social Work focused on Social Policy and Evaluation, during which she interned with the ACLU of Michigan’s policy and legislative team and assisted local nonprofit organizations in creating data and evaluation metrics. She currently serves as a coordinator for the Michigan Center for Youth Justice on a project aiming to increase placement options and enhance cultural competency within the juvenile justice system for LGBTQIA+ youth. Yona is eager to put her data skills to work at the League in support of data-driven policies that advocate for equitable access to healthcare, education, economic security, and opportunity for 0-5 year old children. In her free time, she enjoys tackling DIY house projects and trying new outdoor activities with her dog.
Amber Bellazaire joined the Michigan League for Public Policy as a policy analyst in June of 2019. Her work primarily focuses on state policy and budgets affecting Michigan’s Medicaid programs. Previously, Amber worked at the National Conference of State Legislatures tracking legislation and research related to injury and violence prevention, adolescent health, and maternal and child health. She also brings with her two years of Americorps service. As a full time volunteer, Amber had the opportunity to tutor high school students in Chelsea, Massachusetts and address issues of healthcare access and food insecurity through in-person outreach in Seattle, Washington.
Simon Marshall-Shah joined the Michigan League for Public Policy as a State Policy Fellow in August 2019. His work focuses on state policy as it relates to the budget, immigration, health care and other League policy priorities. Before joining the League, he worked in Washington, D.C. at the Association for Community Affiliated Plans (ACAP), providing federal policy and advocacy support to nonprofit, Medicaid health plans (Safety Net Health Plans) related to the ACA Marketplaces as well as Quality & Operations.
