The Earned Income Tax Credit (EITC) is widely recognized as one of the most effective anti-poverty, pro-working family investments we make as a community. Simply put, it is a tax credit that allows workers with low to moderate incomes to keep more of their hard-earned wages.

In 2010, the state legislature cut Michigan’s state EITC by 70 percent. Working families saw their tax bills increase by up to $300 — funds they sorely need to pay for essentials like food, clothing and transportation. These few hundred dollars extra go a long way for struggling families striving for financial stability.

NASW Michigan joined a broad coalition of organizations to help express their support for Gov. Gretchen Whitmer’s proposal to increase the Michigan Earned Income Tax Credit ( EITC).  Gov. Whitmer’s proposal included increasing the Michigan EITC from 6% to 12%.

We know that more than one- quarter of Michganders age 18-24 live in poverty and are struggling to make ends meet. As social workers we know that you see first hand the experiences of vulnerable families.

These tax credits help families and communities break the cycle of poverty by making our tax code more fair, since they benefit low- and moderate-income families who see a disproportionately larger portion of their income consumed by sales taxes and payroll taxes.

We should support an increase in the Earned Income Tax Credit because it:

  - Reaches more than 350,000 working families in Metro Detroit and more than 750,000 across Michigan.

- Would bring more than $200 million in tax refunds back to Michigan workers every year if doubled from the current rate.
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Has a long-term impact on children’s lives. The modest boost in income during childhood propels students to succeed in school and earn more throughout their lifetimes.

- Is good for the local economy. For every $1 brought into a community through the EITC, $1.67 is generated in new economic activity.

Share your first hand experiences of those you serve who could benefit from an EITC increase.