Save Our Michigan Earned Income Tax Credit


The Michigan Earned Income Tax Credit lets working families who earn low wages or who have fallen on hard times keep more of what they earn to afford the basics. But House Republicans are proposing to cut the EITC for the second time in five years – this time completely – effectively raising taxes on about 800,000 low-income working families raising 1 million kids.

It is a proven effective anti-poverty tool that reduces the number of children living in poverty. At its current rate, it lifts about 7,000 working families above poverty. The EITC has long-lasting, positive effects on children, improving infant health, helping students do better and go farther in school, and increasing work and earnings in future generations.

Michigan policymakers cut the EITC in 2011, when it was reduced from 20% to 6% of the federal credit. The average credit dropped 70%.

At a time when no other state is looking at cutting their state EITC and recent polling shows that two-thirds of Michigan residents oppose its elimination, we should work to restore the EITC rather than eliminate it.