Published on April 23, 2021 in Advocacy Results
The Earned Income Tax Credit (EITC) is 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.
Similarly, the Child Tax Credit (CTC) is an investment in children from low- to moderate-income households. It provides a boost to families’ incomes, allowing them to better cover basic costs like food and child care. The Child Tax Credit is proven to significantly reduce childhood poverty while improving infant and maternal health and educational attainment.
United Way’s ALICE Report shows that 38 percent of Michigan families were struggling to afford their basic needs before the first case of COVID-19 showed up in our state. The EITC and CTC are proven tools we can use to help stabilize household budgets in the wake of the pandemic and the economic hardship that came with it.
In past years, not all workers had access to the Earned Income Tax Credit and many families had earnings that were too low to benefit from the Child Tax Credit. Fortunately, the American Rescue Plan temporarily corrects these issues by:
If these changes were made permanent, 4.1 million children would be kept out of poverty and 17 million low-paid working adults would become more financially stable. The EITC and CTC not only provide needed support to families and households, they boost local economies. These tax credits can significantly reduce the number of households living below the ALICE threshold while also supporting local businesses.
Tell Congress to support workers and children by making the Earned Income Tax Credit and Child Tax Credit permanent today!
In 2010 the state legislature cut Michigan’s 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:
Take action with us. Tell your legislator to increase the state EITC today!