Effects Of The Michigan Earned Income Tax Credit On The Economy And Working Families

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Michigan EITC 1

The Effects of the Michigan Earned Income Tax Credit on The Economy and Working Families
Shereca Gordon
Social Welfare and Social Justice
Professor: Linda Werthman, R.S.M., PH.D., LMSW
December 1, 2014

Michigan EITC 2
Abstract
The state of Michigan’s Earned Income Tax Credit is a good anti-poverty mechanism for low and moderate income working families. The Michigan credit was an effective technique for achieving a reduction of the poverty rate in 2011. The Michigan Earned Income Tax Credit targets a certain income level of working families. In 2011 the state Earned Income Tax Credit reached over 700,000 households. Governor Rick Snyder does not support its state credit geared toward low income families irrespective of the amount of families that were elevated out of poverty. The tax credit advocates for children and child education, can stimulate the economy by way of the multiplier effect, and lead families to self-sufficiency. Michigan EITC 3
The Effects of the Michigan Earned Income on
The Economy and working Families The Michigan Earned Income Tax Credit (MEITC) is a refundable credit that targets low-income working families. There are many other states with the Earned Income Tax Credit (EITC) some with a refundable credit some with a non-refundable credit. The state credit follows the same criteria as the federal EITC. The MEITC is a credit against the states income tax that attempts to create tax equity among the wealthy and poor citizens of

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