The Impact of EITC Cuts
A new report says Michigan's low-income working families will pay an estimated $244 million more in state income taxes next year due to reductions in the state's earned income tax credit, the Associated Press reports. “The Michigan League for Human Services released a report yesterday that shows the state earned income tax credit in 2009 reduced taxes for low-income families by $349 million. That savings will drop to $104 million for 2012,” the AP explains. A spokeswoman with the League says the tax credits boost the economy because poor families spend the money right away.
Political Ad Buys
Five politically conservative groups appear to be pooling their money to buy political ads on Michigan TV stations. Lester Graham reports:
The public files of Michigan’s TV stations reveal four different political non-profits and a super PAC are taking turns buying ads critical of President Obama. Rich Robinson, with the Michigan Campaign Finance Network, keeps track of this kind of political spending. Often this political money is reported nowhere else. “Millions of dollars have been spent in Michigan, characterizing the Obama administration and its policies, and there will be no accountability for who's behind that,” Robinson says. Most of the groups do not have to reveal who their donors are. Record-breaking amounts of money are expected to be spent in an attempt to influence voters this election year.
MI Budget Boost
A new report says Michigan is collecting more in tax revenues than previous guessed. Steve Carmody reports:
The state House Fiscal Agency reports that revenues in the General Fund and School Aid Fund are running nearly $200 million higher than previously estimated for this fiscal year. The agency predicts revenues will also be slightly higher in the next fiscal year. “General Fund revenues are fluctuating more than school aid. It does appear at this time that there may be more money in school aid,” says Ari Adler, the spokesman for state House Speaker Jase Bolger. Adler says legislative leaders hope to pass a budget for next year by the end of the month. The next fiscal year begins October 1st.