Four leaders to drive efforts towards the creation of a working parents tax cut in Michigan.

LANSING, Mich. – In June of this year the Working Parents Tax Cut Coalition, made up of more than 80
individuals and organizations from across the state, sent a letter to the Governor and legislative leaders, calling for the enactment of a large tax cut for working parents raising an estimated 250,000 children. Today, a steering committee was announced to lead efforts toward making this proposal a reality for Michigan families.

The steering committee members represent a diverse range of sectors, ideologies, and geographies, but are all committed to providing additional supports to working parents with young children, to help them pay for basic necessities, especially the high cost of childcare. The steering committee members are:

• Alison Freas, president and CEO of The Source, a Grand Rapids-based organization that supports employer partners by helping their employees access a range of supports that contribute to their financial stability.

• Jametta Lilly, CEO of the Detroit Parent Network, an organization that seeks to educate and
empower metro-Detroit parents to get them more involved in their children’s education, and
advocate for system-wide change.

• Paul Long, president and CEO of the Michigan Catholic Conference, which represents the Catholic Church in Michigan on matters of public policy.

• David Meador, the executive director of the Detroit Regional CEO Group, a collaboration between senior business, governmental, and philanthropic leaders focused on finding solutions to some of the biggest problems facing southeastern Michigan.

The steering committee will lead advocacy efforts in support of a proposal for a working parents tax cut for EITC recipients with children under six. Under the proposal, eligible households would receive a $5,000 tax credit for each child under three, and a $2,500 tax credit for each child between three and six. Bills similar to the coalition’s proposal have been introduced in both the Michigan House and Senate.

“We constantly hear from employers that the high cost of childcare presents a major obstacle to employee retention,” said Alison Freas, president and CEO of The Source. “This proposal would provide workers with the resources they need to access high quality childcare, and remain stably employed.”

Paul Long, president and CEO of the Michigan Catholic Conference, added, “The Catholic Church supports efforts to promote the dignity of low-income workers through tax policies that better enable parents to support their families. This proposal works to ensure that working fathers and mothers in our state can afford the expenses associated with childcare, so that married couples or single parents may continue to earn a living while their children are cared for.”

Advocates also note that by structuring this support for working parents in the form of a refundable tax credit, the proposal provides parents with much-needed flexibility, and helps to combat the so-called “benefit cliff,” where public assistance declines as employment earnings increase. “This proposal not only provides much needed support to hard-working families, but it also provides that support in the form of cash, allowing parents to put money towards whatever need is most pressing for their family,” said Jametta Lilly, CEO of the Detroit Parent Network.

“Most safety net programs are complicated to apply for and decline in value as employment earnings rise, which can disrupt financial stability,” said David Meador, executive director of the Detroit Regional CEO Group. “This proposed tax credit would be easy to apply for and receive, and because it does not decline in value as employment earnings rise, it would actively encourage people to work and work more.”

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About Michigan Future, Inc.
Michigan Future, Inc. is a non-partisan, non-profit organization. Our mission is to be a source of new ideas on how Michigan can succeed as a world class community in a knowledge-driven economy. Its work is funded by Michigan foundations. More information can be found at risingincomeforall.org