Radio Made in Michigan
5:25 pm
Tue February 26, 2013

Democrats Push Plan To Increase Tax Credit For Low Income Residents

Democrats in Lansing want to restore the state’s Earned Income Tax Credit for low-income residents.

Credit WKAR File Photo

As The Michigan Public Radio Network’s Jake Neher reports, the credit has been cut to less than a third of what it was a couple years ago.

The federal government has its own Earned Income Tax Credit for people with low wages. Governor Rick Snyder says a state credit is redundant. 

But Democratic state Senator Burt Johnson says it can mean a few hundred extra dollars people can use for basic needs. He says he’s confident Republicans will be on board.

“It’s really important to make sure that we get the majority’s attention on this to do something that is honest to goodness great for people,”  he says.

Some conservative lawmakers have already expressed interest in boosting the tax credit. They say it promotes employment in low-income communities.

The legislation would raise the credit to 20 percent of what the federal government offers. Right now, it’s at six percent.