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Coalition supporting Earned Income Tax Credit welcomes Michigan Municipal League to its ranks

April 18, 2011

LANSING, Mich. – Adding to a growing tide of support, the Michigan Municipal League (MML) is the latest organization to stand up for the Michigan Earned Income Tax Credit (EITC). The MML Board of Trustees voted to oppose legislation that would eliminate the EITC, which returns a yearly average of $432 to low-income working families, most with children.

The MML is the newest member of a coalition of organizations dedicated to defeating the plan to eliminate the EITC – a move that would raise taxes on nearly 800,000 lower-income working families and their children by $330 million, while providing a massive $1.8 billion tax cut for businesses.

“We are thrilled to welcome Michigan’s leading advocate for local government, the MML, to our coalition,” said Gilda Z. Jacobs, president and CEO of the Michigan League for Human Services. “When a family receives its state EITC check, it is spent quickly on home repairs, auto repairs, heating and lighting bills, and other local purchases. In other words, EITC money goes directly to the local businesses and communities the MML fights for.”

According to data gleaned from a Brookings Institution report, eliminating the EITC could be devastating for businesses in Michigan’s inner cities. Taking 20 percent (the Michigan EITC match) out of the total EITC funds received would have the following effect:

  • Over $55 million will be taken out of the Detroit economy every year
  • $6.9 million will be taken out of Grand Rapids
  • $6.5 million will be taken out of Flint
  • $4.8 million will be taken out of Lansing
  • $4.3 million will be taken out of Dearborn

“In some of these urban areas, businesses are struggling just to get by as it is,” Jacobs said. “Eliminating the EITC will almost certainly force them to close their doors.”

For more information about the Michigan Earned Income Tax Credit, visit www.saveoureitc.com.

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