A Financial Breakdown for Struggling Families
It’s not every day that you hear about a policy play that has the potential to change the game in the final seconds. But that is precisely what is happening in Michigan, due to the Senate Democrats’ Working Families Tax Credit.
This change, which quadruples the state’s match for the federal Earned Income Tax Credit (EITC) from 6% to 30%, is expected to put extra money in the wallets of around 700,000 Michigan residents.
The Lowering MI Costs Plan: Tackling Financial Hardship
This tax credit increase is part of the grandly titled Lowering MI Costs Plan, and it is just one component of a bigger attempt to address growing costs and economic strain. Consider it the state’s approach of keeping high fuel prices and supply chain difficulties from affecting family budgets.
A boost for basic needs.
The significance of this credit growth cannot be emphasized. We’re talking an additional $750 each year for people who need it the most, for a total of $3,150 when combined with the federal EITC. This isn’t just a drop in the bucket; it’s a full-fledged financial flood relief for families trying to afford the necessities.
A bipartisan score
What distinguishes the EITC is its bipartisan beginnings. This strategy, launched by Republican former President Gerald R. Ford and supported by leaders from both parties, has a track record of bringing families out of financial difficulties. It is a rare example of both political parties working together to achieve the same goal.