Gov. Gretchen Whitmer is proposing an increase to Michigan’s Earned Income Tax Credit (EITC), aiming to deliver an average combined tax refund of $3,000 to 730,000 residents across the state.
“Raising the state EITC puts Michiganders first by putting nearly $3,000 back in their pockets when paired with the federal EITC,” she said.
In a release following Whitmer’s State of the State address Jan. 26, the governor said Michiganders who work full-time but still can’t get ahead deserve to keep more of their hard-earned dollars.
When Whitmer announced the MI New Economy plan, she set a goal of lifting 100,000 working families out of poverty.
“Delivering on this tax cut for working families will pull over 22,000 Michiganders out of working poverty and make significant progress toward that goal, while raising incomes for 730,000 workers and benefitting nearly 1 million kids-nearly half the kids in Michigan,” Whitmer said in the release. “This refund for working families is a game-changer for so many Michiganders, and I know we can work together to get this done.”
According to the release, the boost to the EITC will help over 730,000 individuals keep their heat on, put food on the table, repair their car or pay an apartment deposit. Benefits to almost half of the children in the state will also help raise funds for new backpacks, warmer coats and more hot meals.
This comes as Mike Larson, president and CEO of Michigan Association of United Ways, said EITC encourages work and helps families pay for the necessities that keep them working. By raising the EITC, he said, the state would support a proven method of positively impacting Michigan’s working families, businesses and communities.
