1. Michigan League
FOR
Human Services
Michigan EITC
Helping working families stay out
of poverty
f t

2. What is the EITC? Michigan League FOR
Human S i
Services
The federal EITC was signed into
law by President Ford
State EITC piggybacks federal; 20
percent
Signed into law 2006
Michigan one of 24 states with state
EITC

3. Why a state EITC? Michigan League FOR
Human S i
Services
Offsets
Off t regressive nature of entire tax
i t f ti t
system
Stimulus – money is spent quickly,
locally
y
782,000 filers in tax year 2009, $338 m.
8 out of 10 states with highest child
p
poverty do not have a state EITC
y

4. EITC adds fairness Michigan League FOR
Human S i
Services
Even with EITC
EITC…
Families earning $15,000 – $32,000
g
pay 10.1% of income in state/local
taxes
$54,000 – $86,000 pay 9.4%
Over $365,000 – just 5.6%

5. Vulnerable kids, families
kids Michigan League FOR
Human S i
Services
■ Keeps 14,000 children
out of poverty
■ Lifts 25,000 people in
working families out of
poverty
■ Lessens the impact of
poverty for 700,000 in
Michigan
Source: Center on Budget and Policy Priorities

6. Gov. Snyder’s
Gov Snyder s plan Michigan League FOR
Human S i
Services
Taxes on Individuals Skyrocket as
Business Taxes Dwindle
Individual Income Tax
d dua co e a
MBT & Corp. Income Tax
illions
$8,000
venue in mi
$6,000
$4,000
Rev
$2,000
$292.7
$0
FY 2011 FY 2013

7. Sample taxpayers Michigan League FOR
Human S i
Services
Refund
R f d Proposed
P d Tax
T
Income now refund increase
Senior couple $42,000
$42 000 $780 $80 90%
Single parent of 2 $22,000 $749 $60 92%
Refund Proposed
Income now refund Tax
Married couple
⎯ with 2 children $55,000 $1,045 $883 16% decrease
⎯ with 3 children $110,000 $3,897 $3,974 2% increase

8. Tax plan hits poor families Michigan League FOR
Human S i
Services
1.2% 1.1%
1.0%
0 8%
0.8% 0.7%
Tax Change 0.6%
as a % of 0.6% 0.5% 0.5%
Income 0.4%
0.4%
0.2% 0.1%
0.0%
Lowest Second Middle Fourth Next 15% Next 4% Top 1%
20% 20% 20% 20%
(Less than
(L th ($17,000-
($17 000 ($32,000-
($32 000 ($53,000-
($53 000 ($83,000
($83 000 - ($151,000-
($151 000 ($335,000
($335 000
$17,000) $32,000) $53,000) $83,000) $151,000) $335,000) or more)
Income Group
Source: Institute on Taxation and Economic Policy, March 2011

9. What do voters say? Michigan League FOR
Human S i
Services
League commissioned poll, EPIC/MRA,
found 76% do not support eliminating the
EITC when told that it will finance biz t
h t ld th t ill fi bi tax
cuts
Free Press/WXYZ poll found taxing pensions
unpopular, but more opposition to ending
EITC (58%)

10. Take action Michigan League FOR
Human S i
Services
Go to www.saveoureitc.com
Sign UWSEM letters

11. The Michigan League for Human Services is
a state-level policy organization focused on
the
th needs of Mi hi
d f Michigan’s l’ low-income f ili
i families
and individuals.
The League was founded in 1912 and is a
private, nonprofit charitable organization.
p , p g
A United Way Agency