ANN ARBOR, Mich. (Jan. 26, 2022) — Sen. Jeff Irwin (D-Ann Arbor) has issued the following statement on Gov. Gretchen Whitmer’s fourth State of the State address tonight, in which she asked for an expansion to the Earned Income Tax Credit (EITC):
“With the ongoing COVID-19 pandemic, low- and middle-income workers are working harder and longer hours for less money. The benefits of reinvigorating the Earned Income Tax Credit are critical to the long-term recovery of our state. Governor Whitmer has been a supporter of this and I was glad to see her again calling for this much needed expansion.
“The EITC is a proven tool for lifting people out of poverty. Right now, families that receive this credit get about $150; increasing the EITC would increase that to about $499 back in their pockets. When hardworking Michigan families get tax relief, they spend it on childcare, medicine, and groceries. That’s $499 more that our families will have to go right back into our local economies, and help struggling families thrive, rather than just survive. I’m proud to stand with our governor to ensure that workers get to keep more of the money they earned. This small change will make a big difference for a lot of people.”
During Gov. Gretchen Whitmer’s State of the State address, she advocated increasing the percentage of the federal EITC that the people of Michigan can claim from 6% to 20%. In 2019, the Michigan League for Public Policy estimated that about 738,380 families across Michigan received an average credit of $150, putting more than $110 million back into the local economy. A fully restored EITC would increase that average credit to $499 for these families, meaning that $368,451,620 would be back in the pockets of Michigan families ready to go into our economy.