Commissioners pass resolution supporting proposal to double Michigan Earned Income Tax Credit at Sept. 5 meeting
PONTIAC – United Way for Southeastern Michigan today applauded the Oakland County Board of Commissioners for unanimously passing a resolution supporting the doubling of Michigan’s Earned Income Tax Credit from 6 percent to 12 percent at its Sept. 5 full board meeting.
“I commend the Oakland County Board of Commissioners for leading on this important issue and becoming the first county to publicly support the proposal to double the state’s Earned Income Tax Credit,” said Kyle DuBuc, director of policy, advocacy and government relations for United Way for Southeastern Michigan. “Doubling the EITC will put money back into working people’s pockets in Oakland County and across Michigan, helping them provide for their families and boost the state’s economy.”
The Federal EITC provides relief for low- to moderately low-income working families in the form of a credit on their tax returns. In 2006, lawmakers in Michigan passed a law that provided those who qualify 20 percent of their federal EITC on their state income taxes.
That amount was reduced to 6 percent through legislation passed in 2010 under Gov. Rick Snyder. Gov. Gretchen Whitmer has proposed doubling Michigan’s EITC to 12 percent in her 2020 budget.
A recent Michigan State University study found increasing the Michigan EITC to 12 percent would increase the average filer’s tax refund by more than $130.
In addition, the study found an increase to the EITC would have a significant positive impact on communities across the state due to increased spending and economic activity. According to the study, the increase would have an economic impact of more than $92 million.
“The Earned Income Tax Credit has a history of bipartisan support, and I am proud that we continued that tradition today by passing this resolution encouraging our state legislators to support doubling the EITC,” said Dave Woodward, chairman of the Oakland County Board of Commissioners. “The EITC is an important resource that helps nearly 60,000 Oakland County families keep more of their hard-earned dollars and make ends meet. Increasing the EITC will help families put food on the table, fix their cars and pay bills.”