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Gov. Whitmer's Plan to Cut Taxes for Working Families


January 26, 2022 



Gov. Whitmer's Plan to Cut Taxes for Working Families 

Tripling tax credit for working families would deliver an average refund $3,000 to 730,000 Michiganders 


REDFORD, Mich. -?Today, Governor Gretchen Whitmer proposed increasing Michigan's Earned Income Tax Credit, or EITC, in her State of the State address. Increasing the EITC, a tax cut for working families, would deliver an average combined tax refund of $3,000 to 730,000 Michiganders, helping them pay the bills and put food on the table. 


"Raising the state EITC puts Michiganders first by putting nearly $3,000 back in their pockets when paired with the federal EITC," said Governor Whitmer. "Michiganders who work full-time but still can't get ahead deserve to keep more of their hard-earned dollars. As part the MI New Economy plan, I set an ambitious 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 towards that goal, while raising incomes for 730,000 workers and benefitting nearly 1 million kids-nearly half the kids in Michigan. This refund for working families is a game-changer for so many Michiganders, and I know we can work together to get this done." 


"The Michigan Catholic Conference has long been a supporter of expanding the Earned Income Tax Credit in Michigan and was instrumental in its original creation. The EITC does more to lift people out of poverty, while encouraging the dignity of work, than any other policy in state government," said Paul Long, President and CEO of the Michigan Catholic Conference. "We are eager to work with the Governor and those in the Legislature who have been working to advance the expansion of the EITC for many years." 


"As policymakers look for productive, proven solutions to address the financial challenges facing Michigan workers and families, improving the state EITC should be near the top of the list," said Monique Stanton, President and CEO of the Michigan League for Public Policy. "Increasing the Michigan EITC will directly help nearly 750,000 households make ends meet while getting spent at local businesses on immediate expenses like groceries, clothing and school supplies for kids, car repairs and more. This one-two punch of economic impact bumps up everyone's bottom line and benefits every corner of the state." 


"An expansion of the Earned Income Tax Credit offers an opportunity to significantly increase the economic well-being of all Michiganders, including the hard-working ALICE families who are employed but still struggle to make ends meet," said Mike Larson, president and CEO of Michigan Association of United Ways. "We know that the Earned Income Tax Credit encourages work and helps families pay for necessities that keep them working, like home repairs and vehicle maintenance. The time is now to support a proven tool to positively impact Michigan's working families, businesses and communities." 


The Plan 

Michiganders who work hard every day to provide for their families deserve a break and a bigger tax refund. Governor?Whitmer wants to restore the Michigan EITC to its original amount and deliver an average tax refund of nearly $3,000 to over 730,000 working people.  


Boosting the EITC back to its original amount would pull over 22,000 Michiganders out of working poverty and help over 730,000 people keep the heat on, repair their car, or pay an apartment deposit. Nearly 1 million kids-almost half of the kids in Michigan-would benefit from raising the EITC. It means new backpacks, warmer coats, and more hot meals. 


Gov. Whitmer's Plan to Cut Taxes for Working Families (PDF)