Michigan faces unprecedented economic conditions. As we continue to recover from the pandemic and deal with increasing inflation and high gas prices, we are also faced with a shortage of workers that creates great uncertainty for employers across the state.
Both of our organizations understand the importance of work. The dignity that comes from earning an income to provide for your family is powerful. That’s why we are both advocates for public policy that rewards and encourages people to have a job.
More:Opinion: GOP lawmakers eye another cowardly tax cut
More:As election nears, Gov. Whitmer’s enthusiasm for tax cuts is growing
One policy that encourages work that has brought us both together – and members of both political parties, as well as more than 90 public policy, religious, and business organizations – is expanding Michigan’s Earned Income Tax Credit (EITC).
The EITC is a refundable tax credit that is designed to help lower-income taxpayers and working families who make less than $57,000 a year. The credit gradually phases in with lower incomes and phases out as incomes rise. The EITC incentivizes work, as the tax credit can only be claimed if the recipient has earned an income.
The federal EITC began in 1975 when Michigan’s own President Gerald R. Ford worked across the aisle to establish the tax credit. Nearly every president since, from both parties, has expanded the EITC. In 2006, a bipartisan group of Michigan lawmakers came together to enact our own EITC to provide a match of the federal EITC.
How to spend the surplus productively
Currently, Michigan is faced with a historic budget surplus. And as economic uncertainty grows for Michigan’s working families, expanding our EITC would help solve several problems facing all Michigan taxpayers and businesses.
The EITC encourages work by providing a tax credit for hard-working Michigan families and results in money being spent locally, as families use the tax credit for necessities, like auto-repairs, food, childcare, and school supplies. Estimates show that by expanding Michigan’s EITC to 30 percent, a single parent household with two children would see their tax credit grow from $355 to $1776 and would boost local Michigan businesses by more than $440 million annually.
Surveys show that two-thirds of families live paycheck to paycheck. In 2019, nearly 730,000 Michigan households, including more than four-in-ten Michigan children, benefited from the EITC. Data shows that EITC recipients only claim the credit for one to two years, as the EITC helps lift them out of poverty.
Employers also gain
Employers and small businesses benefit from this incentive to work, too. At a time when hotels, restaurants, and employers of all sizes are having trouble finding enough employees, rewarding work will help increase Michigan’s labor force. Expanding the EITC provides a growth opportunity for small businesses and boosts local economies.
As Michigan’s leaders determine what to do with the historic budget surplus, we encourage them to expand Michigan’s EITC. The benefits are clear for working families and Michigan’s businesses. We have an opportunity to deal with the worker shortage and help those who need it most deal with the ever-rising costs of daily life. We encourage Michigan’s leaders to seize the opportunity before them to help boost our economy and help lift thousands of hard working families out of poverty by expanding Michigan’s EITC.
Brian Calley is the President and CEO of the Small Business Association of Michigan. Paul Long is President and CEO of the Michigan Catholic Conference.
Expand Michigan Earned Income Tax Credit with budget surplus & Latest News Update
Expand Michigan Earned Income Tax Credit with budget surplus & More Live News
All this news that I have made and shared for you people, you will like it very much and in it we keep bringing topics for you people like every time so that you keep getting news information like trending topics and you It is our goal to be able to get
all kinds of news without going through us so that we can reach you the latest and best news for free so that you can move ahead further by getting the information of that news together with you. Later on, we will continue
to give information about more today world news update types of latest news through posts on our website so that you always keep moving forward in that news and whatever kind of information will be there, it will definitely be conveyed to you people.
Expand Michigan Earned Income Tax Credit with budget surplus & More News Today
All this news that I have brought up to you or will be the most different and best news that you people are not going to get anywhere, along with the information Trending News, Breaking News, Health News, Science News, Sports News, Entertainment News, Technology News, Business News, World News of this made available to all of you so that you are always connected with the news, stay ahead in the matter and keep getting today news all types of news for free till today so that you can get the news by getting it. Always take two steps forward
Credit Goes To News Website – This Original Content Owner News Website . This Is Not My Content So If You Want To Read Original Content You Can Follow Below Links