LANSING — State Rep. Patrick Green (D-Warren) has introduced House Bill 5179 reestablishing a tax credit to help working parents offset the cost of childcare or care for an elderly adult. In 2011, Governor Snyder and the Republican majority in Lansing implemented a significant tax shift, increasing the financial burden for working and middle class families. Since then, many families in Michigan have struggled to maintain a good quality of life in the face of the rising costs of living. Green’s bill works to help those families with child and adult care costs in an effort to stretch their income further.
“The middle-class standard of living is just not there for too many families. Our current tax structure unfairly hits individuals in the lower to middle-income bracket. Your state government used to recognize the need to support our working and middle class families through tax credits and deductions, but the 2011 tax code changes eliminated or decreased many of these useful resources,” said Green. “My dependent care tax credit will give the hardworking parents of Michigan the tools they need to successfully provide for their families and pursue a stable economic future.”
Green’s dependent care tax credit allows taxpayers with the lowest adjusted gross income — less than $25,000 — to declare the highest tax credit. The credit is available in lesser amounts as an individual’s adjusted gross income rises to $100,000.
Senator Curtis Hertel (D-Lansing) introduced identical legislation in the Senate earlier this year. “Quality child care is critical for the development of young children,” said Hertel. “While these bills won’t solve every problem, it is my hope that they make life a little easier to raise a family in Michigan.”
“The costs of care for a child or an elderly family member can take up most of a working parent’s income, leaving a family with two working parents to get by on only one paycheck, or forcing a single parent to work two jobs,” said Green. “This is a simple tax credit to offer these families. It makes good economic sense because it allows earners to keep more of their money to spend in our communities and help lift them into the middle class.”