Podcasts & RSS Feeds
Most Active Stories
- This ballot proposal is critical to Michigan's economy, but most people won't bother to vote on it
- What explains Michigan's large Arab American community?
- Some think their immigrant ancestors were the last that should be allowed in the U.S.
- Michigan Republican Party's tactics remind me of Watergate, because both were unnecessary
- Michigan's campaign for governor gets weird as Republicans deploy spyglasses
Tue January 25, 2011
Lawmakers moving to eliminate tax credit for the poor
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.