June 18, 2025
FOR IMMEDIATE RELEASE
June 18, 2025
Contact: press@michigan.gov
Gov. Whitmer Highlights IRS Data to Show that Republican Attacks on Earned Income Tax Credit Could Cost Michigan Families Up to $10,000 Per Year
Federal budget passed by U.S. House Republicans will make it harder for working Michigan families to claim the Earned Income Tax Credit (EITC), costing more than 700,000 Michiganders thousands of dollars every year
“Every Michigander should be able to put food on the table and keep the lights on without worrying about their bank account,” said Governor Whitmer. “House Republicans have passed a bill containing dangerous attacks on tax savings programs that could make it harder for working families to save money. Here in Michigan, I’ve worked hard to lower costs by quintupling the Michigan Working Families Tax Credit, so nearly 700,000 families can get $2,800 of their hard-earned dollars back in their pockets. The Republican bill would put this progress at risk by threatening the wellbeing of our most vulnerable families and their kids.”
“We’re committed to lowering costs for Michiganders and helping more families keep money in their pocket,” said Lt. Governor Garlin Gilchrist II. “Our expansion of Michigan’s Working Families Tax Credit put $3,150 back in the pockets of more than 700,000 families all across Michigan. Despite Republican attacks on tax savings programs, we’ll continue to Stand Tall for Michigan and protect working families’ checkbooks.”
“Slashing the EITC makes it even harder for working families to feed their kids and keep a roof over their heads,” said Ron Bieber, President of the Michigan AFL-CIO. “Republicans in D.C. are taking from the working class so they can give billionaires a tax cut. It’s unacceptable. Republicans need to put workers and their families first, not last.”
"The EITC helps hundreds of thousands of Michiganders make ends meet each year," said Monique Stanton, President of the Michigan League for Public Policy. "These are people trying hard to put food on the table, take care of their kids and pay the bills. Now, a tax credit that began under Michigan's own President Gerald R. Ford and has done so much good for so many decades, is being threatened. Not only will this plan create burdensome paperwork and red tape for those who have earned the tax credit, it will bog down IRS workers who are already dealing with shortages and understaffed. This is a wasteful policy and preys on families earning low incomes. Instead, Congress should look to those earning millions each year and require them to pay their fair share."
“Cutting the EITC is direct blow to working families and seniors who are struggling to make it in today’s economy, said Lori Stephens-Brown, Director of Marquette Aging Services. “This isn’t a budget line item-it’s a lifeline.”
Republican Changes to EITC
Based on the data released by the IRS, Governor Whitmer is highlighting the effect Republican changes to the EITC will have on Michigan’s working families and their children. The EITC is a federal tax credit that saves eligible working families thousands of dollars each year. In Michigan, Governor Whitmer has been committed to supporting working families, quintupling Michigan’s version of the EITC, the Michigan Working Families Tax Credit, to give over 700,000 working families an average tax refund of $2,800. Working families rely on these savings to pay for essentials, including groceries, utilities, and fuel.
Effect on EITC Eligibility
The Republican bill would add unnecessary provisions that will make it harder for many eligible families with children to claim and receive the EITC, resulting in hundreds of thousands of families losing out on critical savings. Currently, EITC claimants have to go through rigorous review procedures to ensure they are eligible. The Republican bill complicates the system by requiring that each family who claims a child for the EITC must pre-certify each child they claim, every year they file, before they can claim the EITC. They must also obtain an EITC certificate before the claim can be filed.
By adding extra hoops for busy, working families to jump through, the Republican bill is designed to ensure that fewer eligible claimants will be able to get money back in their pockets. Not only will many families be unaware of the changes, but due to Republican cuts in funding and staffing to the IRS, millions of families will lack the support to navigate this complex requirement. This will result in thousands of Michigan families being unable to claim the EITC starting in 2028, forcing them to lose out on potentially $10,000 per year.
Delivering for Michigan’s Working Families
Governor Whitmer has been committing to fighting for working families, ensuring they have access to the tools and support they need to make it in Michigan. Since taking office, Governor Whitmer has:
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