Advocacy News – Jan. 27, 2023
The Michigan Chamber of Commerce, proud supporters for a state increase in the Earned Income Tax Credit (EITC), applauds the Michigan legislature for their swift, bipartisan action in passing House Bill 4002 and Senate Bill 3 to ensure working families receive financial relief right now. Both bills sponsored by Representative Nate Shannon and Senator Kristin McDonald Rivet respectively, increase the EITC from the current 6 percent to 30 percent beginning last year, 2022. Yesterday, the Michigan House passed HB 4002 by a vote of 100-8, and the Senate passed SB 3 by a vote of 27-11. One of the bills, likely HB 4002, will be taken up next week for a vote by the opposite chamber of the legislature and, if passed, will be sent to the governor for an expected signature.
The EITC was scaled back over a decade ago due to a lack of state funding and the inability to responsibly provide relief. With that in mind, our members strongly urge lawmakers to consider the funding mechanism required to support a substantial increase and to think critically regarding the best avenue to provide long-term relief.
MI Chamber President and CEO, Jim Holcomb, provided to the Senate Committee on Housing and Human Services earlier this week a memo in support of increasing the EITC. This increase makes a direct impact on hard-working Michiganders but is simultaneously fiscally responsible to ensure sustained relief for years to come. Shared interest for all our members, and non-member businesses alike, is the current state-wide and national talent pipeline crisis and the tradeoff required to work while barriers to employability, like affordable housing and childcare, are at an all-time high. An increase in the state’s EITC provides legislators, no matter the party, the opportunity to kick-off the 2023-2024 legislative session by giving back to taxpayers, while also building a more robust talent pipeline and boosting our economy.
For questions contact Leah Robinson at lrobinson@michamber.com.