Mackinac Island, MI – Business organizations and legislators from both major political parties have come together to urge support for a significant expansion of Michigan’s Earned Income Tax Credit (EITC).
“We are pleased to see lawmakers from both parties, in the spirit of cooperation and civility that is the theme of this year’s Mackinac Policy Conference, come together to support a significant increase in the state’s Earned Income Tax Credit,” said Sandy Baruah, president, and CEO of the Detroit Regional Chamber of Commerce. “The Earned Income Tax Credit is the one tax cut proposal before the legislature and the Governor that has broad support from major Michigan business organizations and lawmakers from both parties.”
The Detroit Regional Chamber is one of 13 chambers of commerce from around the state that have joined with the Michigan Chamber of Commerce, Business Leaders for Michigan, the Michigan Manufacturers Association and the Small Business Association of Michigan and more than another dozen business organizations to support a major increase in the Michigan Earned Income Tax Credit.
“Expanding Michigan’s Earned Income Tax Credit will provide a boost to businesses across Michigan that are struggling to fill jobs,” said Jim Holcomb, president, and CEO of the Michigan Chamber of Commerce. “The business community supports a refundable Earned Income Tax Credit expansion because it provides an incentive for people to go to work and helps working families pay for necessities. We’re encouraged to see the broad bi-partisan support that has come together for EITC expansion and hope to see this as part of a final budget deal.”
The EITC is a refundable Federal tax credit established nationally over 40 years ago with support by both Democrats and Republicans. The state also with bipartisan support began matching the federal credit in 2006. In 2019, the EITC benefited more than 730,000 hard-working Michigan households with more than four in ten Michigan children receiving the State EITC. The EITC provides both an incentive to work and a reward for working.
“The Earned Income Tax Credit is a pro-work tax credit that puts money in the pockets of hard-working families,” said Sen. Wayne Schmidt (R-Traverse City), sponsor of Senate Bill 417, which would expand Michigan’s EITC from six percent to 30 percent. “When the business community and both political parties can agree that we need to expand the EITC, it’s time to take action. Expanding Michigan’s EITC will help boost local economies and provide the opportunity for Michigan families to step up and out of poverty toward meaningful economic security.”
Representative Donna Lasinski (D-Scio Township) added that “expanding Michigan’s Earned Income Tax Credit will help the many Michiganders working in lower-wage jobs who get up every day and work hard to earn a living. No matter your political party, we can all agree that providing this critical tax relief will help families move up and out of poverty. I’m proud to stand with Michigan’s business community and my legislative partners on the other side of the aisle to make sure this significant expansion of the EITC is part of the final budget plan.”
To view the Michigan EITC Coalition statement from more than 80 organizations, click here. You can also view the letter from local chambers and business groups in support of EITC expansion to the governor and legislature by clicking here. And to view the letter from Detroit Caucus members in support of EITC expansion, click here.
Background: The EITC only goes to working taxpayers and phases out at higher incomes, ending at $57,414 for a couple with three or more children.
More than 730,000 Michigan households received the state EITC in 2019 – impacting nearly one million Michigan children – putting almost $110 million back into Michigan’s economy.
