A broad coalition of elected leaders, and community organizations today urged support for Gov. Gretchen Whitmer’s proposal to increase the Michigan Earned Income Tax Credit. The group called on state lawmakers to show bipartisan support for Gov. Whitmer’s proposal to double the Michigan EITC from 6% to 12%, which, according to a recent Michigan State University study, would increase the average rural EITC filer’s refund by more than $130.
“The Earned Income Tax Credit is an important resource for 5,000 residents in Marquette and surrounding communities that helps break down barriers for families struggling to make ends meet,” Jenn Hill, a Marquette city commissioner said at the press conference at the Marquette senior center. “Gov. Whitmer’s proposal to expand the EITC from 6% to 12% will benefit families, local communities and local businesses. The EITC has a history of bipartisan support, and bringing this plan to life will require cooperation from lawmakers on both sides of the aisle.”
The Federal EITC provides relief for low-to-moderately low income working individuals in the form of a credit on their tax returns. In 2006, Michigan lawmakers passed a law that provided qualified filers 20% of their federal EITC on their state income taxes. That amount was reduced to 6% through legislation that took effect under former Gov. Rick Snyder in 2011. Gov. Whitmer has proposed doubling the Michigan EITC to 12% in her 2020 budget.
“The Earned Income Tax Credit is a powerful and effective policy that helps many low-to-moderately low income working families in our community put food on their table, fix their cars and pay their utility bills,” saidBarbara Susorney, an AARP tax volunteer at the Marquette Senior Center. “Doubling the EITC from 6% to 12% will have a significant positive impact on our economy by boosting spending at local businesses.
“The senior center is a community focal point where seniors come to receive services like free tax preparation that help them remain independent,” said Maureen McFadden, senior services manager for the City of Marquette. “The EITC is an important resource for many of the residents we serve and our entire community. It helps seniors and working families make ends meet and puts money back into our economy.”
A common misconception is the EITC only impacts urban communities. However, the recent Michigan State University study found Gov. Whitmer’s proposal to increase the Michigan EITC to 12% 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 rural 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.
“Working families in rural communities stand to benefit greatly from an increase in the EITC,” said Steven R. Miller, director of the Center for Economic Analysis at Michigan State University. “Our research found nearly 335,000 rural residents are directly impacted by the EITC and doubling the EITC would spark job creation in rural communities.”
“Michigan’s EITC was enacted to provide tax relief for low to moderately low-income individuals, couples and families who have work-related sources of income,” said Richard Brich, the AARP tax coordinator for Marquette. “The Michigan EITC’s benefits touch every corner of our state, but it can and should be doing so much more. We are urging lawmakers to work with the governor to expand our state EITC, better support Michigan’s struggling families, and unleash more of the credit’s purchasing power in local communities around the state.”
“There’s a reason the EITC is looked at so favorably by Republicans and Democrats alike – it has a ripple effect on local businesses and communities,” said Michelle LaJoie, executive director of the Community Action Agency Marquette Alger. “The EITC has a significant impact on the households that receive it by helping improve economic security. Children whose families receive the EITC also see improvements in nutrition and educational and economic attainment. We appreciate Gov. Whitmer taking a stand for working Michigan families by boosting the Michigan EITC in her budget, and we encourage lawmakers on both sides of the aisle to support this important proposal.”
