Small investment, big difference
In 2011, the Michigan Legislature cut the state Earned Income Tax Credit from 20 percent of the federal EITC to 6 percent. That reduction is took effect for the first time in the 2013 tax season – and taxpayers across the state got a big surprise.
The average eligible family saw its taxes increase by more than $300 with the reduction of the state EITC – and the reduction is estimated to plunge 9,000 Michigan children into poverty.
The Michigan EITC helps reduce poverty, provides an economic stimulus in low income communities, and helps veterans return to civilian life. With higher-than-expected revenues for Fiscal Year 2015, it’s time to restore the Earned Income Tax Credit.