Editor’s Note: This column originally appeared in Crain’s Detroit Business on Sun., June 2.
Summer is almost here, and while we’re definitely looking forward to warmer temps and more sunshine, we at the League are laser-locked on the state budget process right now. While we try not to pick favorites, we have to admit that there’s an element of Governor Gretchen Whitmer’s budget that has been a favorite of ours for a long time: The EITC.
At both the federal and state level, the Earned Income Tax Credit (EITC) is arguably one of the most effective and beloved policies on our books today. What other policy boasts a list of supporters that includes presidents Gerald Ford, Ronald Reagan and Barack Obama, former U.S. House Speaker Paul Ryan, as well as Gov. Jennifer Granholm, former House Speaker Craig DeRoche and former Senate Majority Leader Ken Sikkema here in Michigan.
And we can add Gov. Whitmer, who included doubling the state EITC to 12% of the federal EITC in her 2020 budget proposal, to that long list of bipartisan supporters.
There’s a reason the EITC is usually looked at so favorably by Republicans and Democrats alike. While the credit benefits families directly, it has a ripple effect on local businesses and communities. And it is available to and utilized by residents in our state’s urban and rural areas—and red and blue legislative districts—alike.
The federal EITC was first enacted under Michigan’s own President Gerald Ford in 1975, and the past six U.S. presidents who followed have signed a federal EITC expansion into law.
Michigan’s EITC is available to any state taxpayers who file for the federal EITC, and the credits serve the same purpose. And while they generally share the same bipartisan support, our state EITC hasn’t enjoyed the same steady, upward trajectory as its federal counterpart.
In fact, in 2011 it was almost eliminated entirely under Gov. Rick Snyder’s massive tax shift, which asked residents to pay more so businesses could pay less—a shift our workers are still feeling the pain of today. The Michigan League for Public Policy and a broad coalition of advocates—including the Midwest Independent Retailers Association, the Community Economic Development Association of Michigan and AARP-Michigan—successfully fought to save it.
Keeping it alive in our laws was huge, but Michigan’s EITC still took a massive hit. The credit was cut from 20% of the federal credit to just 6% of the federal credit. Since 2011, Michigan’s EITC and the working families who rely on it have been quietly surviving and waiting for a better political climate to come.
That’s why Gov. Whitmer’s proposal to bump it back up is so significant. And a majority of Michigan residents see that as clearly as she does, with 67% of Michiganders favoring a state EITC increase, according to an EPIC-MRA poll conducted in March. Boosting the credit is a good step in undoing the damage of the 2011 cut and restoring the state EITC’s impact on Michigan workers, businesses and economy.
The credit has a significant impact on the households that receive it. It promotes work and is the best remedy for poverty in our toolbox. The EITC not only improves economic security, but other outcomes, as well. Among kids in families that receive the EITC, there are improvements in nutrition and educational and economic attainment, and a decreased incidence of low birthweight. A recent study by the University of California even found that increasing the EITC could help reduce suicide and drug and alcohol deaths in people who are financially struggling.
But beyond the benefits for working families, the EITC has a major impact on the communities they live in, as the money is usually spent on financial needs like bills, groceries, car repairs or a new appliance.
For the 2017 tax year, more than 748,500 Michigan households (about 15.6%) received the state EITC. At an average credit of $150, that pumped more than $112 million back into the state economy.
And if Gov. Whitmer’s proposed restoration were in place, it could double the economic impact on families, communities and local economies to the tune of around $224 million statewide.
A recent study by Michigan State University found that Gov. Whitmer’s proposed increase of the Michigan EITC would result in $95.2 million in added economic activity for an estimated 335,000 rural residents, with the largest economic impact taking place in northern counties of the Lower Peninsula.
The Michigan EITC’s benefits touch every corner of our state. But it can and should be doing so much more.
Gov. Whitmer’s proposed doubling of Michigan’s EITC has rightfully restored the public and political interest in the credit. Now we need action to restore the state credit itself. As the state budget process now shifts into its post-Mackinac gear, it’s incumbent on lawmakers to work with the governor to restore our state EITC, better support Michigan’s struggling families, and unleash more of the credit’s purchasing power in communities around the state.
P.S. Take a look at our latest geographic fact sheets to learn more about what the EITC does (and what it could be doing) in your county.
Jay Cutler joined the League in March 2026 as the Kids Count Senior Data Analyst, where he collects, analyzes, and prepares data for Kids Count in Michigan.
Danielle Taylor-Basemore joined the League as the Development Data and Stewardship Coordinator in June 2025. She brings with her five years of nonprofit experience with a special focus on community engagement, data visualization and strategic programming. Prior to joining the League, Danielle served as the Business District, Safety, and Digital Manager at Jefferson East, Inc.
Scott Preston is a Senior Policy Analyst with the Michigan League for Public Policy, where he leads the organization’s immigration and criminal justice reform portfolios. In the three years prior to joining the League, Scott facilitated the Southeast Michigan Refugee Collaborative and managed a small business economic development program at Global Detroit. His work included launching Michigan’s first Refugee Film Festival and building on a trusted connector model that linked marginalized communities with crucial resources. Scott’s work at the League is informed by his background in journalism and research. He spent four years covering the Syrian refugee crisis in the Middle East for publications such as The Economist, and later worked with unaccompanied refugee minors through Samaritas. Scott holds a master’s degree in international migration and public policy from the London School of Economics and Political Science.
Kate Powers joined the League as the Chief Development Officer in February 2025. Prior to joining the League, Kate held leadership positions at many Michigan nonprofit organizations, most recently serving as the COO and Chief Development Officer of Ele’s Place. Kate has spent the bulk of her career in fundraising, with a short stint in the state Legislature as a legislative aide to members in both chambers. Kate is a graduate of Michigan State University’s James Madison College with a Bachelor of Arts in Social Relations and has a certificate in fundraising management from the Lilly Family School of Philanthropy at Indiana University. Additionally, Kate served on the East Lansing Public Schools Board of Education and is a past President of the Junior League of Lansing. In her free time, she enjoys traveling with her husband and her son and saving outfit of the day and home decor ideas on Pinterest. 
Nicholas Hess joined the League as the Fiscal Policy Analyst in September of 2024. In this role, Nicholas focuses on tax policy, government revenue, and their impact on working families and racial equity, including the effects of the Earned Income Tax Credit (EITC) and Child Tax Credit (CTC). Nicholas values the role that judicious fiscal policy can play in the improvement of people’s lives and the economy, alleviating inequities along the way.
Audrey Matusz joined the League as the Visual Communications Specialist in September 2024. She supports the team with implementing social media strategies and brainstorming creative ways to talk about public policy. She brings with her nearly a decade of experience in producing digital products for evidence-based social justice initiatives. 
Jacob Kaplan 
Donald Stuckey 
Alexandra Stamm 
Amari Fuller
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. 
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.
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.
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.
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.
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.
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.
