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Mon May 20, 2013
Advocates for the poor: Restore Earned Income Tax Credit with tax windfall
A group that advocates for working poor families in Michigan says the state should use a recent tax windfall to restore low income tax credits. Last week, the state announced it expects to receive close to half-a-billion dollars more than originally thought this year.
Gilda Jacobs, with the Michigan League for Public Policy, says it makes sense to give some of that money back to low-income taxpayers.
“In part, one of the reasons that there are greater revenues is because the tax burden, the tax shift, was shifted back to low- and middle-income people and seniors,” she said.
She says working poor families have been negatively affected.
“And there is an opportunity through restoration, or partial restoration of the Earned Income Tax Credit to help make whole some of that tax increase,” said Jacobs.
Governor Rick Snyder and state lawmakers have scaled back the Earned Income Tax Credit in recent years. They say the same credit at the federal level does enough to help the state’s working poor.
Democrats in the state Legislature have introduced bills to at least partially restore the credit.
Gov. Snyder says the money from the tax windfall should go toward fixing roads.