The Earned Income Tax Credit is a mainstay of tax relief for working families in the U.S. The power of the EITC lifts 22,000 Michiganders out of poverty — or, at least it did before Republicans slashed it in 2011. But even at its new reduced rate, the EITC still saves 6,800 people from poverty.
Michigan House Democrats, including Rep. Tom Cochran (D-Mason), want to restore the EITC or even expand it beyond its 2011 level to bring more tax relief to working Michigan families (a taxpayer has to be employed to claim the credit).
State Reps. Tom Cochran (D-Mason) and Kristy Pagan (D-Canton) introduced legislation today to financially strengthen working families in Michigan by revitalizing the Earned Income Tax Credit. The EITC is a refundable tax credit available to low- and middle-income individuals to offset taxes that are paid on wages. Cochran’s bill would restore the state ETIC to 20 percent of the federal level, and Pagan’s bill would raise it to 25 percent. State Rep. Yousef Rabhi (D-Ann Arbor) joins Cochran and Pagan in calling for tax credits for hardworking Michigan residents who struggle to make ends meet and is the lead co-sponsor of both bills.
“Michigan families work tirelessly for their paychecks, and they need relief when tax season comes,” Cochran said. “The Earned Income Tax Credit lets families keep more of their hard-earned dollars, so that they can buy things like clothes, groceries and appliances from local shops. Expanding the Earned Income Tax Credit is good for working people and good for Michigan’s economy.”