The deal announced by Lt. Gov. Brian Calley today to preserve a small portion of the Michigan Earned Income Tax Credit is a good step toward saving an important public policy tool in Michigan that keeps kids out of poverty.

It should be recognized, however, that even with the $25 per child credit and enhancements announced last week in the Homestead Property Tax Credit, working poor families will still be far behind.

For example, a family of three (one parent, two kids) making $25,500 will lose $457 – an 89 percent drop in refund when compared with current law. (That’s a $54 refund under this plan as opposed to a $511 refund under current law.)

Other changes for a family of three (two children, one parent) families:

• A family of three earning $10,000 will lose $350
• A family of three earning $15,000 will lose $533
• A family of three earning $20,000 will lose $451

The Earned Income Tax Credit last year provided an average of $432 per family. In addition, current law provides a $600 per child deduction that Gov. Snyder has targeted for elimination in order to pay for business tax cuts.

 “A credit of $25 per child does not go very far in making up for these other losses,’’ said Michigan League for Human Services President & CEO Gilda Z. Jacobs. “Children in working families will still fall into poverty as a result of these changes, and working poor families will be asked to pay a bigger share of their income than higher-income families in order for businesses to enjoy an 86 percent tax cut.”

For more information, please go to www.saveoureitc.com.