Rep. Guerra Disappointed in EITC Elimination Passage

Credit that helps the working poor cut in GOP road funding plan
Tuesday, June 16, 2015

LANSING – State Representative Vanessa Guerra (D-Saginaw) expressed her disappointment at the passage of HB 4609, a bill that would eliminate the Earned Income Tax Credit in an attempt to fund road repairs. The EITC elimination would raise taxes on 820,000 low-income working families, while saving only $117 million. This number is a drop in the bucket of the more than $1 billion needed to fund Michigan roads.

“This tax credit is a saving grace for many families who are struggling to pull themselves out of poverty, and doing it the right way. They work, they pay their bills and most importantly they support their children,” Guerra said. “To eliminate a credit that can help pay for needed medications or help our working poor put food on the table shows how out of touch Republicans are in Michigan.”

House Democrats have introduced several bills which they believe provide a more comprehensive and fair plan to address the condition of Michigan’s roads. These bills would address topics such as truck weight limits, the Michigan Transportation Fund formula, providing gradual adjustments to gas taxes and transitioning to a graduated income tax. The bills have yet to be scheduled for a committee hearing.

“The Legislature has been considering plans to address road funding since well before I set foot in the Capitol. Throughout that time, House Democrats have sought to protect our working families, education and other critical needs, such as health care and public safety,” Guerra said. “We should not fund our roads by taking away much needed assistance from our most vulnerable citizens.”