In News Releases

For Immediate Release
May 19, 2022

Contact:
Alex Rossman
arossman@mlpp.org
517-775-9053

While disputes continue on anticipated budget surplus, EITC increase stands out as area of common ground  

Amid new proposed tax changes, increasing the EITC continues to be singular bipartisan, widely supported proposal

LANSING—With a significant budget surplus expected to be announced at tomorrow’s Consensus Revenue Estimating Conference and new proposals being floated today on what to do with it, the Michigan League for Public Policy issued the following statement continuing to emphasize increasing the EITC as the most important and impactful tax change before lawmakers. The statement can be attributed to League President and CEO Monique Stanton.

“While this isn’t the tax plan we would draw up, the components for a compromise are there, particularly the understanding that we need to do more for Michigan workers and parents who are barely making ends meet. The League and our partners have been working for years to increase the state Earned Income Tax Credit, and these efforts have ramped up over the last six months, as more than 80 groups and policymakers from both sides of the aisle have come together to advocate for raising the state EITC to 30% of the federal credit. Policymakers clearly recognize that the EITC benefits kids, workers and businesses in every part of the state, and while significant political differences remain around what to do with the state’s expected surplus revenue, it’s noteworthy that raising the EITC continues to be the lone tax proposal with bipartisan agreement. 

“As budget and tax policy negotiations continue, the League will continue to advocate for reasonable, responsible and sustainable tax relief for families that need it most. A state EITC that’s 30% of the federal credit, as Republican Senator Wayne Schmidt’s Senate Bill 417 would establish, is still the goal and puts Michigan’s credit more on par with other states. We hope that going forward, raising the EITC will continue to be a priority on both sides of aisle.”

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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 advance economic security, racial equity, health and well-being for all people in Michigan through policy change. It is the only state-level organization that addresses poverty in a comprehensive way.