September 30, 2009

Action Alert! Tax Credit for Working Poor in Jeopardy

Urgent! Your Phone Calls Needed to Save Tax Credit for Working Poor

In 2006 the Michigan Legislature voted overwhelmingly in a bipartisan fashion to create a state Earned Income Tax Credit. This tax policy has proven to lift more families and children out of poverty than any other federal or state tax policy. At least 35 other states in the country provide such a credit for their citizens who are working but pay disproportionate payroll taxes.

According to the Michigan law passed three years ago, working individuals who qualify for the federal EITC that have a median yearly income of $10,000 to $15,000 began claiming ten percent of the federal credit at the state level last year, with an additional ten percent slated to go into effect this year.

Unfortunately, because of the state of Michigan's economy, some lawmakers have expressed an interest in either freezing or dramatically scaling back the second half of the state credit. Michigan Catholic Conference is asking for subscribers of this legislative network to telephone their state legislators and the governor urging opposition to any measure that seeks to freeze or reduce full implementation of the state EITC. Numerous studies have proven that this tax credit not only lifts families out of poverty, but also generates millions for local economies as those who receive the credit spend the dollars locally.

Phone calls are being requested because this important issue is time sensitive. You may find your State Representative and his or her telephone number here, and your State Senator here. The governor's office may be contacted at (517) 335-7858.

Please kindly tell your legislators and the govenor that you oppose any measure that halts full implementation of the state earned income tax credit, and thank them for their time.

No comments: