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Mon January 31, 2011
'No tax hike' pledge include eliminating tax credit?
About two dozen Michigan anti-tax legislators could find themselves in a bind. The Michigan legislature is likely to vote on eliminating the Michigan Earned Income Tax Credit. Killing the credit would mean the lowest paid workers in the state would have to pay more in taxes. Kelly Cobb is with the group Americans for Tax Reform. He says if eliminating the credit meant the state got more money, it’s a violation of the “no tax hike” pledge.
“That’s where the question lies is whether or not this would bring in revenue to the state. And as a stand-alone proposal, it would certainly do that and therefore be a pledge violation.”
There is an escape clause for legislators who signed the pledge. If they vote to increase taxes on the working poor, and also cut taxes for business by a like amount or more, it would meet the requirements with the tax reform group.