earned income tax credit

What tax changes mean for Michigan's working class

Stateside Staff — Tue, 12 Mar 2013 20:59:38 +0000

When Governor Snyder and Michigan legislature cut part of the Earned Income Tax, they argued that it was just a move that piggy-backed on the federal Earned Income Tax Credit.

Michigan lawmakers cut the 20 percent rate of the federal credit to 6 percent of federal credit.

This meant that many poor, working-class families saw an increase in their taxes in addition to tax increases they felt from other legislative changes.

The state's advocates for the poor have called upon the legislature to restore the Earned Income Tax Credit to Michigan in order to ease the financial stress felt by poor families.

Michigan Radio's Lester Graham spoke with Gilda Jacobs, the President and CEO of the Michigan League for Public Policy.

Listen to the audio above to hear the story.

In this morning's news: Snow, EITC, Detroit mayoral race

Emily Fox — Wed, 27 Feb 2013 13:24:29 +0000

Storm dumps at least 6 inches on Michigan
A wet snow storm dropped at least 6 inches of snow on part of Michigan. As the Associated Press reports,
"The National Weather Service says as of Wednesday morning 6 inches fell in the Grand Haven and Muskegon areas, while 5 inches fell between Lansing and Jackson. Four to 5 inches fell in Grand Rapids. Four inches fell in some Detroit suburbs and Saginaw," the Associated Press reports.
Low income earners could see bigger tax refunds under bill
"Low-income Michiganders would see bigger state income tax refunds under a bill in the state Legislature. Governor Rick Snyder and lawmakers aggressively cut the state’s Earned Income Tax Credit in recent years. The legislation would raise the credit to 20 percent of what the federal government offers. Right now, it’s at six percent," Jake Neher reports.
Mike Duggan announces run for Detroit mayor
The former Detroit Medical Center executive and Wayne County prosecutor, Mike Duggan has officially announced that he will be running for Detroit mayor. According to the Associated Press, "[Duggan] says he'll use his managerial and government experience to help turn around Detroit's finances and improve poor public services."

Commentary: Robbing the poor

Jack Lessenberry — Tue, 15 May 2012 14:22:51 +0000

A year ago, in their zeal to give businesses an enormous tax cut, the governor and the legislature considered virtually eliminating the Earned Income Tax Credit for the working poor. In the end, they didn’t quite kill it. Instead, they merely took most of it away.
When they did, there was hardly a whimper of protest from the Democrats. About the only group which seemed upset was the non-profit and non-partisan Michigan League for Human Services.

Report breaks down impact of earned income tax credit by legislative district

Lindsey Smith — Mon, 14 May 2012 19:28:18 +0000

The Michigan League for Human Services is pressuring lawmakers in Michigan who voted last year cut tax credits for working poor families.
The earned income tax credit - or EITC - gives people who would qualify for welfare an incentive to go to work instead. There's a federal credit, and one offered at the state level too. But the state credit was reduced last year in a budget-cutting move.
The reduced tax credit allows families who qualify to claim 6-percent of the federal earned income credit on their 2012 state taxes. In the past, families could claim 20-percent.
Judy Putnam is with the Michigan League for Human Services; a non-profit, non-partisan advocacy group. She says the tax credits boost the economy because poor families spend the money right away.
"Whereas a business or an upper-income tax payer you know getting tax breaks they don’t automatically go and spend that money,” Putnam said.
The organization has published a report it hopes will convince Republicans to restore the earned income tax credit. The report outlines the legislative districts with the most residents affected by the change.
Here's the breakdown by state senator's district; while another set here break the data down by state representatives.

Report says Michigan's tax changes will hit low income families hardest

Mark Brush — Thu, 02 Feb 2012 20:35:28 +0000

A new report by the Michigan League for Human Services takes a look at Michigan's shifting tax policy and it's impact on low-income families.
The report shows what we already know, that businesses in Michigan will receive a tax cut in the state while individuals will pay more.
Low income families, the report's author Joanne Bump concludes, will be hit the hardest.

Instead of axing it, plan calls for reducing the tax credit for the working poor

Rick Pluta and Vincent Duffy — Tue, 10 May 2011 15:12:19 +0000

Governor Rick Snyder's administration has agreed to restore a reduced version of the state income tax credit for working poor families.
The reduced tax break will allow families that qualify to claim 6% of the federal earned income credit on their state taxes.
In the past families could claim 20%.
Snyder's original proposal called for elimination of the credit.

Scrooge and the Budget

Jack Lessenberry — Thu, 21 Apr 2011 16:46:39 +0000

http://stream.publicbroadcasting.net/production/mp3/michigan/local-michigan-964517.mp3
What if the governor increased the amount of Michigan income tax I had to pay by ten dollars a week? The truth is, I’d barely miss it, and if I went out to eat a little less often, I wouldn’t miss it at all.
I’m not anything close to rich, but fortunately, I manage to make an income adequate for my family’s needs, and don’t have any children who need to go to camp or college.

Soaking the Poor

Jack Lessenberry — Thu, 14 Apr 2011 16:46:28 +0000

http://stream.publicbroadcasting.net/production/mp3/michigan/local-michigan-963281.mp3
President Obama came under fire yesterday for proposing that the richest Americans pay a higher proportion of the tax burden, especially with deficits soaring out of control.
Republicans, some of whom are running for president, said this would hurt the economy‘s ability to create jobs.
They said this was just one more wrong-headed left-wing proposal to solve economic problems by “soaking the rich.”

Taxing the working poor

Lester Graham — Thu, 10 Mar 2011 14:55:08 +0000

Under the Governor Rick Snyder's budget proposal the state’s working poor would lose a tax credit. Low-income families could pay more in state income taxes, putting some families below the poverty line.

Bill to end low-income tax credit introduced in state Senate

Zoe Clark — Wed, 09 Feb 2011 12:38:35 +0000

Republican state Senator Roger Kahn introduced a bill yesterday that would eliminate the state's Earned Income Tax Credit. The tax credit currently goes to low-income working people in Michigan. The Associated Press reports:
He (Kahn) says the credit is expected to cost the state roughly $370 million in the upcoming fiscal year and the state can't afford it. Many House Republicans also support eliminating the tax credit. The tax credit is staunchly defended by groups including the Michigan League for Human Services and the Michigan Catholic
Conference. They say eliminating the credit would be the equivalent of a tax increase on the working poor.
The state faces a projected $1.8 billion shortfall for the fiscal year that begins October 1st.

Catholic Church weighs in on state Earned Income Tax Credit battle

Michigan Radio Newsroom — Wed, 02 Feb 2011 20:18:44 +0000

State lawmakers trying to eliminate the Earned Income Tax Credit are hearing from the Catholic Church.
The Michigan Catholic Conference says keeping the credit for the working poor is its top policy goal for this year.
The Conference is the official lobbying arm of the Michigan’s Catholic Dioceses and represents 2.25 million people.
Dave Maluchnik is a spokesperson with the Michigan Catholic Conference.
We have urged members of the House to reconsider their proposal to eliminate the earned income tax credit. There are numerous other groups out there in the state who are very concerned. In fact, there are many protestant organizations, Jewish organizations, that are very interested in protecting this policy.
Lobbying on all sorts of issues will heat up in the coming weeks when Governor Rick Snyder announces his budget priorities for the next fiscal year on February 17th.
Sarah Alvarez - Michigan Radio Newsroom

Governor Snyder on taxing low-income workers more

Lester Graham — Fri, 28 Jan 2011 22:04:38 +0000

Michigan Governor Rick Snyder is side-stepping questions about eliminating a tax credit for the working poor in Michigan.

Lawmakers moving to eliminate tax credit for the poor

Laura Weber — Tue, 25 Jan 2011 21:59:27 +0000

Republicans at the state Capitol are working to get rid of a tax credit for working poor people.
But people who support the Earned Income Tax Credit say the money helps poor people keep their jobs.
Without the credit they might have to go back on welfare, an they say that would cost the state more money.
Gilda Jacobs, director of the Michigan League for Human Services, says all lawmakers have constituents who claim the credit:
"We have some districts where 18% to 20% of the people are filers of this, and they’re putting multi-millions of dollars back into small businesses. So we kind of need to ask people to see this up-close and personal and to really be open to understanding what this is all about."
Republican House Speaker Jase Bolger says the state cannot afford the Earned Income Tax Credit right now:
“The Earned Income Tax Credit is very new in Michigan. It didn’t exist a couple of years ago. It was added at a time where I believe we couldn’t afford it. So as we look at how we are going to revamp Michigan and how we are going to move forward, we have to evaluate things that we can maybe no longer afford, however we do have to look at that with a broader tax structure, and we have to understand that the best social program is a good-paying job.”
Bolger says eliminating the Earned Income Tax Credit will be part of a large package of reforms that are expected to be introduced soon in the House.
Supporters of the tax credit say they have a lot of work to do to convince lawmakers that getting rid of it would hurt people in their districts.