On the day that Michigan learned child poverty was increasing in our state, several Michigan Republican Senators introduced legislation that is virtually guaranteed to hurt even more of the state’s most vulnerable citizens, our children.

Sen. Roger Kahn and a host of senators said they want to raise taxes on almost 800,000 lower-income working families – most with children – by eliminating the state’s Earned Income Tax Credit. The goal of these legislators is to use the money from this tax increase to pay for an elimination of taxes on most Michigan businesses, including many law firms, accounting companies and doctor offices, while raising taxes on families at the lowest rungs of economic opportunity.

The measure would likely push 14,000 more children into poverty. The bill introduction came the same day that the Kids Count in Michigan report was issued, which found 44 percent of Michigan children were living in families below 200 percent of the poverty level – up from 32 percent in 2000.

“How ironic that upon learning that child poverty had increased in Michigan, Sens. Kahn and Brandenburg introduced legislation that would, in effect, add to that attack on children by raising taxes on low-income working families to pay for a tax cut for business. This attack on children, especially the most vulnerable children, is unacceptable,” said Gilda Z. Jacobs, president & CEO of the Michigan League for Human Services, part of a coalition created to support the Earned Income Tax Credit.

A 2009 poll of Michigan voters by EPIC-MRA found that 66 percent of those surveyed opposed eliminating the Earned Income Tax Credit, while only 26 percent supported its elimination.

The federal credit was started under President Gerald Ford and supported by President Ronald Reagan, who included the expansion of the EITC in a tax bill he called “the best anti-poverty bill, the best pro-family measure, and the best job creation program ever to come out of the Congress of the United States.”

The state EITC provided about 800,000 Michigan families with an average of $432 in 2010. Eligible Michigan families receive a refundable income tax credit of 20 percent of their federal credit, which helps offset other state taxes they pay, such as sales taxes.

Of the 10 states with the highest child poverty rates, eight have no state EITC. 

“Gov. Rick Snyder said in his State of the State address that we needed to establish a P-20 education system. That starts with prenatal care and ensures that poor children can attend school without hunger pains. The governor said child poverty was a key item on his dashboard. Lawmakers who support ending the EITC are saying they don’t care about children, and that they don’t care if child poverty rates go up,” said Jacobs.

“In the Chrysler Super Bowl ad that has been acclaimed in Michigan, Eminem says, ‘This is what we do.’ Is this ‘what we do in Michigan?’ Balancing a tax cut for businesses on the backs of poor children? I hope not.”