Senate holds hearing on EITC increase
A plan to quintuple Michigan’s Earned Income Tax Credit or EITC, advanced out of a state Senate committee today.
The credit offers a tax break for low and middle income wage earners.
Democratic Senator Kristen McDonald Rivet sponsors the bill.
“The EITC is pro-work. It puts money in the pockets of working families without government bureaucracy. This policy is designed to bolster the earnings of low wage workers and offset some of the taxes they pay, providing the opportunity to step up and out of poverty toward meaningful economic security.” said Rivet.
Critics say the credit has an improper payment rate that's too high, and say there are better anti-poverty programs the government could pursue.
The credit has received bipartisan support, with both chambers of the legislature introducing their own plans to expand it.