Michigan Sen. Wayne Schmidt | Senator Wayne Schmidt/Facebook
The Michigan Catholic Conference is encouraging the state to provide relief to those living in poverty by expanding access to Michigan's earned income tax credit.
Senate Bill 417, introduced by state Sen. Wayne Schmidt, would gradually raise the state's EITC from 6% of the federal rate to 30% of the federal rate, The Holland Sentinel reported. Approximately 19% of Michigan children are living beneath the poverty line, as well as 37% of the state's single mothers.
"Increasing the state Earned Income Tax Credit would benefit working families, particularly the nearly 1-in-5 children who live in poverty in Michigan," the Michigan Catholic Conference said on Facebook.
Michigan residents with low to moderate income could be eligible for Michigan's EITC, which reduces the amount of tax an individual owes and could provide a refund, the Michigan Department of Treasury reported in a release.
"The Earned Income Tax Credit is a very important tax credit that all eligible Michiganders should seek out," state Treasurer Rachael Eubanks said in the release. "The extra income this tax credit provides can be really helpful to working, low to moderate income families. Please don't hesitate to seek out assistance so you can claim it on both your federal and state individual income tax returns."
Approximately 738,400 Michiganders claimed the state's EITC in the 2019 tax year, for a total of nearly $110.6 million, the Department of Treasury reported. The department believes that thousands of Michigan residents who are eligible for the credit are not claiming it.
"Raising the EITC to 30 percent will put more money in the pockets of families struggling to pay for basic necessities, including help with high child care costs that are keeping too many parents out of the labor force," Matt Gillard, president and CEO of Michigan's Children, told The Holland Sentinel.