Michigan League for Public Policy: Paving the roads on the backs of the working poor

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The House Republican plan to fix Michigan’s roads by eliminating the state Earned Income Tax Credit raises taxes for the second time in five years on workers already struggling to get by on low wages.Eliminating the EITC to pay for roads amounts to robbing poor Peter to pay Paul. The $117 million saved by eliminating the credit is a drop in the bucket of a $1.2 billion transportation plan, but a huge amount to the 820,000 low-income families raising 1 million Michigan children who use the credit to help pay for the very things that keep them working, like transportation and child care.

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