Spirit of anti-poverty tool preserved in tax plan

Contact: Judy Putnam at (517) 410-5798
May 12, 2011 

The Michigan League for Human Services supports a plan that will protect Michigan’s low-income working families by preserving a portion of the state Earned Income Tax Credit.

The tax plan – which passed the Senate today – would give filers a 6 percent match of the federal EITC, rather than the 20 percent match as the credit stands now. Earlier proposals eliminated this important poverty fighting tool.

“This measure preserves the spirit of the Michigan Earned Income Tax Credit,” said Gilda Z. Jacobs, president and CEO of the Michigan League for Human Services, which has been working closely with key lawmakers, the Snyder administration and allies to maintain the EITC structure. “The 6 percent state EITC is a simpler, more efficient and more effective way for Michigan to helps its low-income working families than the earlier complex proposal that included a $25 per child tax credit.

“We appreciate the willingness of the administration and Senate leaders to work with us to find a way that best targets help to low-income working families.

“While we would prefer to have the state EITC continued at 20 percent of the federal EITC, we believe this an acceptable compromise given the budget balancing plans of Gov. Snyder and the Legislature.”

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The Michigan League for Human Services is a nonprofit, nonpartisan statewide policy and advocacy group for low-income citizens. It has a network of 1,500 individuals and organizations from business, labor, human service professions, faith-based organizations as well as concerned citizens.