LANSING — Sen. Jeff Irwin (D–Ann Arbor) is sponsoring legislation to reform Michigan’s tax laws to benefit low- and middle-income families.
“After eight years of Republican control in Lansing, we have a tax code written for, and by, the wealthy,” Sen. Irwin said. “Low- and middle-income Michigan taxpayers need relief and that’s why I’ve introduced tax changes to lessen the burden on the people who our economy depends on: Workers and consumers.”
Sen. Irwin has introduced legislation to reshape Michigan’s flawed tax system. Senate Bill 107 would raise the Earned Income Tax Credit, or EITC, from 6 to 30%, saving the average low-income family approximately more than $500 a year.
“There are too many families in Michigan who are struggling to make ends meet while wealthy individuals and corporations buy yachts, fancy cars, and unscrupulous politicians with their tax breaks,” Sen. Irwin said. “It’s time we make a tax system in Michigan that supports the people who are living paycheck-to-paycheck, rather than those who are more worried about which luxury car they’ll drive today.”
Additionally, Sen. Irwin has introduced Senate Joint Resolution D, which would provide the structure for a graduated income tax in Michigan, placing the burden of funding government more squarely on those who benefit most from the system.
Michigan is one of only eight states that uses a flat income tax and offers one of the lowest percentages of the federal EITC. As many working families submit their tax returns today, they pay a greater percentage of their income on state and local taxes than higher-income individuals.
Senate Bill 107 and Senate Joint Resolution D have both been referred to the Senate Finance Committee.
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