LANSING, Mich., May 18, 2022 — In her efforts to advocate for working individuals and families in Michigan, state Rep. Tenisha Yancey (D-Harper Woods) has asked Gov. Gretchen Whitmer to allocate more of the state’s proposed budget funds toward the Earned Income Tax Credit (EITC). This tax credit is a critical aid for eligible Michiganders — it incentivizes work, reduces poverty and puts money back into local communities.
“We know families in Detroit and throughout our state are struggling to make ends meet,” Yancey said. “The EITC is proven to meaningfully boost incomes for working families and lift millions of people out of poverty. It also increases employment, strengthens local economies and supports small businesses.”
There is significant evidence pointing to the benefits of the tax credit, which is why Yancey — who is chair of the Detroit Caucus — and her colleagues are encouraging the governor to make the fund increase. The Detroit Caucus was centrally involved in drafting the letter to Gov. Whitmer, with the majority of its members endorsing it. The letter outlines how the additional funds are a win-win for all corners of Michigan.
“Michiganders would have an additional $460 million to spend at grocery stores, hardware stores, pharmacies, auto shops and other local small businesses,” Yancey said. “An increased EITC would benefit residents in every part of the state — rural and urban areas, all counties, both peninsulas, and in every political district and jurisdiction. In Wayne County alone, 183,650 families benefited from the state EITC in 2019, returning more $32.55 million to our local economy.”
Yancey’s Senate counterpart, state Sen. Stephanie Chang (D-Detroit), had this to say: “The EITC is an important tool to help Michiganders pay for basic things like childcare, transportation and groceries. So many families continue to struggle yet we know expanding the Michigan EITC to 30% would make a dramatic difference. I support the efforts from the governor and colleagues on both sides of the aisle to make this happen. We cannot delay any longer.”
In the letter to the governor, Yancey summarizes the need for additional EITC funds by explaining that this “must be a top priority, and I urge the governor to remain firm in efforts to ensure there is a significant increase to the EITC in the final budget. This is among the most effective tools we have to positively impact hundreds of thousands of households while bringing millions of dollars back to local communities.”