Earned Income Tax Credit Beneficial for Working Poor
Since 2006, Michigan has offered a refundable credit on state income tax called the Earned Income Tax Credit (EITC). Working in combination with its federal counterpart, the state EITC has been a critical and effective policy for working, low-income families since its inception. During the 2013 tax year, approximately 780,000 Michiganders benefited from the credit, which is often spent on items in the local community such as groceries, car repairs, school clothing, rent, or other bills. During the recent months, State House and Senate members have discussed cuts to the state EITC to provide further revenue for road and transportation infrastructure repairs. The Word from Lansing column for July outlines the importance of the state EITC and explains why it should preserved, not eliminated, in the State of Michigan. Read more…