Earned Income Tax Credit
The Earned Income Tax Credit (EITC) has been proven to be one of the most effective pro-work, pro-family, poverty fighting tools in our country. An expansion of the EITC offers an opportunity to significantly increase the economic wellbeing of Michiganders, especially ALICE families, since the EITC targets only working families and encourages them to progress in the workforce.
- The research shows that families mostly use EITC to pay for necessities –including home repairs and to maintain vehicles to commute to work. Further, the improved financial stability the EITC brings to families has long-term benefits such as improved infant and maternal health, school success, college enrollment, and increased work earnings as children grow into adults.
- Not only does the EITC bring working families much needed support, it boosts the economy. In fact, every dollar claimed for the EITC results in $1.50 to $2 in local economic activity – the bigger the credit, the more money spent locally.
- The EITC is a way to help create a post-pandemic market economy that as it grows, benefits all Michigan families, and has little or no additional administrative costs
The time is now to increase in the state EITC to positively impact Michigan’s working families, businesses, and communities.