Meitc14 March2011
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Meitc14 March2011

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  • 1. Michigan League FOR Human Services Michigan EITCHelping 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 ServicesEven 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’sGov 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 increaseSenior couple $42,000 $42 000 $780 $80 90%Single parent of 2 $22,000 $749 $60 92% Refund Proposed Income now refund TaxMarried 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 isa state-level policy organization focused ontheth needs of Mi hi d f Michigan’s l’ low-income f ili i familiesand individuals.The League was founded in 1912 and is aprivate, nonprofit charitable organization.p , p g A United Way Agency