LANSING, Mich. Jan. 26, 2023 — The House of Representatives passed House Bill 4002 today. The bill expands the working families tax credit, which helps hardworking Michiganders keep more of the money they earn. The bill assists those employed but struggling from economic hardship, due to the recent years of inflation and the pandemic. After the passage, the bill’s sponsor, state Rep. Nate Shannon (D-Sterling Heights), issued the following statement:
“I am excited this bill passed — it’s about time. I have advocated endlessly to get the working families tax credit passed. It was important to me to advocate for legislation that works for both my constituents and Michiganders as a whole. With the struggles of inflation, I knew I needed to sponsor this bill, and I also know hard-working Michiganders need this relief. This credit is one of the most effective anti-poverty measures in history. As a former public-school teacher and involved member of the community, I am quite aware of the challenges families face and their struggles to buy groceries, school supplies and gas. This bill grants hard working Michigan families the relief they need and deserve.”
Under former Gov. Rick Snyder and a previous Republican majority, Michigan’s working families tax credit was slashed from 20% of the federal credit to just 6%, part of a massive effort to give tax breaks to big corporations. Michigan is one of five states lower than the federal tax credit percentage. Democrats have prioritized tax relief for working families for many years.