Increase the Earned Income Tax Credit

Published on April 23, 2021 in

Contact your elected officials to encourage them to help working Michigan families by increasing and expanding the Earned Income Tax Credit.

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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. It is a proven tool our state can use to help stabilize household budgets in the wake of the COVID-19 health crisis. United Way’s ALICE Report shows that 38 percent of Michigan families were struggling to afford their basic needs, even before the pandemic even hit. The modest increase in income generated by the EITC is a vital tool that help working low and moderate-income workers pay for essential household budget items and set them on the path to financial stability.

Unfortunately, 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 households 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, especially during the pandemic.

We need your help to encourage state legislators to support an increase to our state’s EITC.

This is a priority because:

  • It reaches more than 350,000 working families in Metro Detroit and more than 750,000 across Michigan.
  • If doubled to 12 percent, it would bring more than $200 million in tax refunds back to Michigan workers every year.
  • If restored to 20 percent, it would mean nearly $450 million in tax refunds, with an average credit of $600.
  • It has a long-term impact on children’s lives. The modest boost in a family’s income during childhood propels students to succeed in school and earn more throughout their lifetimes.
  • It’s 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. Tell your legislator to increase the state EITC today!