What’s next for the earned income tax credit in Michigan?
Michigan lawmakers are looking to next year to pass some priorities, like expanding the “Earned Income Tax Credit.”
The federal tax credit is available to workers and families who make below certain income amounts. Michigan offers its own supplement based on that scale.
“Mackinac Center” fiscal policy director James Hohmann says expanding it wouldn’t really address poverty.
“It’s not especially geared towards people who need it. I mean you can collect these benefits all the way up to earning $59,000 a year in income.” said Hohmann.
But lawmakers say it would help out struggling families. Democratic Senator-elect Sam Singh points to how stances have changed since the credit got reduced in 2011.
“It’s the fact that these business groups who saw that tax cut happen are now advocating to put it back.” said Singh.
Singh predicts the expansion will come up during budget talks next year.