More than half the states in the country use an earned income credit to help working poor families keep more of their paychecks. Michigan has one of the smallest credits among states that have one.
State Senator Jeff Irwin says the federal earned income credit coupled with a bigger state credit would add up to fewer poor families.
“If we were to pass my bill, we would lift thousands of working families out of poverty here in Michigan."
Some GOP lawmakers also support the credit as an incentive for people on public assistance to find work. But other Republicans say it violates the intent of Michigan’s flat-rate income tax.
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