Bill to end low-income tax credit introduced in state Senate

Feb 9, 2011

Republican state Senator Roger Kahn introduced a bill yesterday that would eliminate the state's Earned Income Tax Credit. The tax credit currently goes to low-income working people in Michigan. The Associated Press reports:

He (Kahn) says the credit is expected to cost the state roughly $370 million in the upcoming fiscal year and the state can't afford it. Many House Republicans also support eliminating the tax credit. The tax credit is staunchly defended by groups including the Michigan League for Human Services and the Michigan Catholic

Conference. They say eliminating the credit would be the equivalent of a tax increase on the working poor.

The state faces a projected $1.8 billion shortfall for the fiscal year that begins October 1st.