LANSING, Mich. (March 2, 2023) – Today, Sen. Kristen McDonald Rivet (D-Bay City) introduced Senate Bill 144 for the Michigan Senate to reconsider immediate effect for her Working Families Tax Credit expansion to 30% of the federal Earned Income Tax Credit (EITC).
While the increase to 30% was finalized February 28 as part of House Bill 4001, the retroactive component of McDonald Rivet’s Working Families Tax Credit and the immediate relief for Michigan families was blocked.
“After we passed the biggest tax relief initiative our state has seen in decades, the Michigan Senate voted on a single question: Deliver or delay that relief? Put a billion dollars in Michiganders’ pockets now or withhold it from workers and retirees squeezed the most by inflation until next year,” Sen. McDonald Rivet said.
“Democrats voted to deliver relief now. Republicans voted to delay it. Without additional legislative action, families would have to wait until 2024 for this relief. That’s why I’m re-introducing my bill and giving my colleagues across the aisle another opportunity to deliver this financial relief as soon as possible. I am pursuing every possible path to get that money to struggling families this year.”
With the credit, over 700,000 Michigan families who have the hardest time affording the basics will see an average of $3,150 dollars back in their pockets. The credit has widespread support, including the endorsement of a coalition of 230 business groups, economic development organizations, health care and hospitality entities, faith organizations and more.
According to data compiled by the Michigan League for Public Policy, 22,207 households in Senate District 35 received the EITC in 2019. With the Working Families Tax Credit, local recipients will receive around $600 more, benefiting almost 30,000 kids and raising 718 families out of poverty.
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