Increase the Earned Income Tax Credit

Contact your state legislator to encourage them to help working Michigan families by increasing the size of the Earned Income Tax Credit.

The Earned Income Tax Credit (EITC) is widely recognized as one of the most effective anti-poverty, pro-working family investments we make as a community. Simply put, it is a tax credit that allows workers with low to moderate incomes to keep more of their hard-earned wages.

In 2010, the state legislature cut Michigan’s state EITC by 70 percent. Working families saw their tax bills increase by up to $300 — funds they sorely need to pay for essentials like food, clothing and transportation. These few hundred dollars extra go a long way for struggling families striving for financial stability.

The legislature is currently considering policy changes to increase the amount of EITC available to Michigan households. We need your help to encourage state legislators to support this increase.

We know from the ALICE (Asset Limited, Income Constrained, Employed) Report that 43 percent of Michigan families struggle to afford their basic needs. The modest increase in income generated by the EITC is a vital tool that helps working families pay for essential household budget items and sets them on the path to economic prosperity.

These tax credits help families and communities break the cycle of poverty by making our tax code more fair, since they benefit low- and moderate-income families who see a disproportionately larger portion of their income consumed by sales taxes and payroll taxes.

We should support an increase in the Earned Income Tax Credit because it:

  • Reaches more than 350,000 working families in Metro Detroit and more than 750,000 across Michigan.
  • Would bring more than $200 million in tax refunds back to Michigan workers every year if doubled from the current rate.
  • Has a long-term impact on children’s lives. The modest boost in income during childhood propels students to succeed in school and earn more throughout their lifetimes.
  • Is good for the local economy. For every $1 brought into a community through the EITC, $1.67 is generated in new economic activity.

Take action with us today. Tell your legislator to support the governor’s proposal to increase the state EITC from 6 percent to 12 percent.