Michigan Poor's Taxes Raised As Businesses See Billion-Dollar Tax Cuts

While Michigan businesses are expecting a 1.1 billion-dollar tax break come January, low-income families in the state have seen their taxes raised over the last two years, according to a new report. And further increases are coming next year.

Michigan was above average for its tax treatment of low-income families in 2010, a report from the Center for Budget and Policy Priorities issued Tuesday found. The report showed that Michigan, along with New Jersey and Wisconsin, has "[raised] taxes on low-income working families in order to finance tax cuts that benefit corporations and wealthy individuals."

Earlier this year, Governor Rick Snyder (R) initially proposed completely eliminating the Earned Income Tax Credit, which now gives qualifying families around $430 annually. State Senate Democrats opposed Snyder's plan, managing to save the EITC, but with significant cuts. When the governor's controversial revisions to Michigan's tax code passed the state legislature in May, the state EITC was reduced from 20 percent of the national average to 6 percent.

The same revisions included scrapping the Michigan business tax code in favor of a flat 6 percent business tax. Next year, two-thirds of businesses will not have to pay state corporate income taxes, according to the Associated Press.

The Michigan League for Human Services strongly opposes the EITC cuts. "When taxes are due in April 2013, the reality will hit for thousands of Michigan families scrapping [sic] by on poverty-level wages and literally being taxed into poverty," reads a statement on the MLHS website.

In an email statement to the Associated Press, Snyder's spokeswoman Sara Wurfel said the governor is working against poverty.

"His overall plan aims to help address and reverse that trend. He's also worked hard to ensure essential and solid safety net services that lower income individuals rely on, like protecting Medicaid access and services," Wurfel said.

Comments

[Sam D man]

01:32 AM on 11/18/2011

TAX TO POVERTY IS AN UNDERSTATEMENT.TAXED TO DEATH IS MORE REALISTIC.

[radarloveu2]

12:41 AM on 11/18/2011

Rick Snyder is ...well..... a dick

[satyrday]

09:32 AM on 11/17/2011

Snyder isn't a governor.

He's a corporate planted agent for crony capitalism, firmly planted on the teat of Michigan.

[KaliKross]

12:17 AM on 11/17/2011

Novel concept: Don't have kids you cannot afford.

"Low income family"? I don't understand how you irresponsibly have a family with no/low income in the first place.

Sorry, sorry. Every now and then I hang my hat on basic math and common sense.

"When you fail to plan [your family], you plan [for your family] to fail."

[Talossa]

12:37 AM on 11/17/2011

Half the GOP wants people to have small families that they can afford.

The other half of the GOP wants to cut off all access to anything (besides abstinence) that would keep a family small.

When you guys get your story straight, come back to us.

[KaliKross]

12:51 AM on 11/17/2011

I hope you're not calling ME the GOP, honey. Do I look like Herman Cain? Lol #FAIL

[erdoc53]

09:05 AM on 11/17/2011

The GOP wants to outlaw birth control, abortion, planned parenthood which teaches young people about responsible sex...no abortion even if the mothers life is at stake...so she can die and we can support her baby who now is motherless....then the GOP wants to rail against all the people who have babies who can't afford them....just don't have sex when you're 23! They are SOS crewed up

[fr33d0mhawk]

10:14 AM on 11/17/2011

What about those who could afford children in the 90's under that socialist liberal tyrant Clinton when everyone had money and good paying jobs, but because of GOP leadership, now make minimum wage or are unemployed?

You don't look like Herman Cain, you sound like Herman Cain, blaming the poor. Remember the 90's, when economists and politicians said no more downturns? They thought they had figured out the cycle and things would be rosey, that it was a good thing to bring children into this wonderful new world, then Republicans took control and flew the USA to hell in a B-1 bomber with the afterburners on.

Novel concept, its not fair to raise taxes on the poor to give a tax break to millionaires, try hanging your hat on that, Mrs. Cain.

[OneTop]

02:59 PM on 11/16/2011

The attack on the poor has been under way for quite some time now.
The GOTP despises the poor, poor women in particular and they want to make sure that if you are born poor --- you stay that way.

[Greg34]

02:51 PM on 11/17/2011

While you may be correct, most of the rich have fled Detroit therefore they are flat broke, no one to pay taxes since all that is left is the poor. That is a Dem city going flat broke. How did all those tax increases work for you. While I don't agree with raising taxes on the poor, you better make it competitive for the wealthier people and middle class to want to stay in your state and pay your taxes. If not your whole state will look like Detroit. It is going to happen to Chicago to. The CME and Sears is gonna bail on that city. This is the fault of politicians wild spending and pomises to unions.