In late April, I wrote about Michigan Governor Rick Snyder’s fake concession on the Earned Income Tax credit (EITC). The EITC is a tax credit that benefits the working poor, especially those with kids, in Michigan. I wrote:
In a dramatic concession, he’s agreed to give qualifying families $25 per child . This represents 5.8% of the EITC the average family would have received.
He will now tell everyone he made a concession. But, if his budget passes in May as it most likely will, he will have actually slashed an important bit of assistance for many poor Michiganders with families by 94.2%.
Governor Snyder has now made another fake concession.
Michigan’s working poor would continue to receive supplemental income from the Earned Income Tax Credit – albeit at a significantly reduced level – under the latest revision to Gov. Rick Snyder’s proposed business and income tax overhaul plan.
The credit, currently set at 20% of the federal EITC, would be reduced to 6%, under a proposal announced by Lt. Gov. Brian Calley this morning during a Senate committee hearing on the overhaul.
That would mean about $108 million in relief to low-income wage earners in 2012, down from a projected $360 million under current law.
So, instead of slashing funding to Michigan’s working poor by 94.2%, he’s only slashing it by 70%. Such a compassionate bastard. But, hey, at least businesses get to keep their 86% tax cut. That’s a good thing, right?