ITEP Work in Action
Michigan League for Public Policy: News Flash: Michigan Taxes Are Still Upside-Down
October 17, 2018
While no news is often regarded as good news, in this case, it’s not. Michigan’s tax structure is still highly regressive, and taxes Michiganders with low incomes at a higher rate than Michigan’s wealthiest residents, according to a report by the Institute on Taxation and Economic Policy.
Michigan League for Public Policy: The Looming Danger of Tax Cut Triggers in Michigan
May 15, 2018
New analysis by the Institute on Taxation and Economic Policy (ITEP) uses current year and two-year forecasts to calculate the impact that a 0.1 or 0.25 rate reduction in the Personal Income Tax (PIT) could have on taxpayers and state revenue. The data shows that any reduction in the PIT actually shifts the tax load further to low-income Michiganders.
Michigan League for Public Policy: The EITC: The Good, The Great And The Unfortunate
January 26, 2018
According to modeling by the Institute on Taxation and Economic Policy, in 2019 about 1,400 fewer filers (about 0.4%) will qualify for the credit, resulting in $7 million in fewer federal credits being distributed to the state. By 2027 about 14,500 fewer filers (about 2%) will qualify for the credit, resulting in a loss of $96 million of federal credit value. The same filers who lose their federal EITC will also lose their ability to claim their state EITC, resulting in a loss of additional local economic support.
Michigan League for Public Policy: The benefits of Deferred Action for Childhood Arrivals (DACA) on immigrants in Michigan
December 20, 2017
Researchers at the Institute on Taxation and Economic Policy (ITEP) estimate that nationwide, DACA enrollees contribute $2 billion in state and local taxes each year. In Michigan, these young adults contribute $13 million in state and local taxes annually. If federal elected officials fail to pass a replacement to DACA and beneficiaries’ work permits expire, […]
Michigan League for Public Policy: Immigrant families in Michigan: A state profile
October 18, 2017
Michigan immigrants also contribute millions in tax revenue each year, and in doing so help pay for important public programs and infrastructure in the state. In 2015 for example, undocumented immigrants in Michigan paid approximately $86.6 million in state and local taxes. Young undocumented immigrants also contribute their share in taxes. In 2015, DACA-eligible immigrants […]
Michigan League for Public Policy: Review tax expenditures to help fix Michigan’s broken revenue stream
May 18, 2016
“Michigan has a budget problem, and simply put, there just isn’t enough money to go around. Michigan has experienced crisis after crisis—the Great Recession, nearly record-high unemployment, municipal financial emergencies, the city of Detroit’s bankruptcy, the Flint water crisis and the financial struggles of Detroit Public Schools to name a few. In attempting to fix […]
Michigan League for Public Policy: The 2015 roads plan: Helps wealthy and hampers budget
December 18, 2015
“Finally, the income tax rollback that was thrown in as a sweetener has implications on the budget as well as tax fairness. Under the plan, if General Fund revenues grow by more than the rate of inflation, the rate of the income tax would be reduced. According to the House Fiscal Agency analysis, if these […]
Michigan League for Public Policy: Enough is Enough: Business Tax Cuts Fail to Grow Michigan’s Economy, Hurt Budget
November 2, 2015
Cutting business taxes has not been an effective way to grow jobs and the Michigan economy as promised. This is particularly true when combined with increased taxes on individuals, disproportionately affecting low- and middle-income people and families. In 2011, the Legislature and governor gave businesses a generous $1.6 billion tax cut by repealing a business […]
Michigan League for Public Policy: Undocumented immigrants: Reform increases their tax contributions
October 21, 2015
Undocumented immigrants already contribute a significant amount to our state’s tax system. Under President Obama’s 2012 and 2014 executive actions, the amount will increase and could be even more with comprehensive reform. Read full report here
Michigan League for Public Policy: Paving the roads on the backs of the working poor
October 21, 2015
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 […]
Michigan League for Public Policy: Testimony Presented to the House Roads and Economic Development Committee HB 4609 – EITC Elimination
October 21, 2015
House Bill 4609, which would eliminate the Michigan Earned Income Tax Credit, is a tax hike on 820,000 working families who are raising 1 million children. It punishes working families who are playing by all the rules but still not getting ahead. Read full testimony here
Michigan League for Public Policy: Road funding ballot proposal: a win-win for everyone
March 10, 2015
According to a new report from the Michigan League for Public Policy, an analysis by the Institute on Taxation and Economic Policy shows that even after the sales tax increase, the restoration of the state’s EITC to 20% of the federal EITC is enough to offset negative effects for low-income workers. On average, when taking […]
Michigan League for Public Policy: A Solution at Last to Michigan’s Crumbling Roads
March 3, 2015
Analysis by the Institute on Taxation and Economic Policy shows that the sales tax increase and the increase of the EITC will help low-income working people. After all of the changes in the package are accounted for, Michigan’s lowest earners (annual incomes under $20,000) will experience a net tax decrease. Read full report here. […]
Michigan League for Public Policy: Income Tax Cuts: Financially Irresponsible and No Economic Benefits
January 26, 2015
Proposals to roll back the personal income tax in Michigan will not create jobs or grow our economy and will disproportionately benefit the wealthiest taxpayers the most. It is also fiscally irresponsible to reduce taxes when the state is facing a budget shortfall due to lower than expected revenues. In fact, most of the benefits […]
Michigan League for Public Policy: Let’s Not Make it Harder for People to Get to Work!
November 25, 2014
Improving the state’s roads is critical to economic growth in Michigan. Not only do people depend on the roads and public transportation to get to work, but businesses—and potential businesses—rely on safe roads to transport goods. It is imperative, however, to ensure that people can still afford to get to work if taxes are increased. […]
Michigan League for Public Policy: Road fix must protect low-income families
June 9, 2014
“It’s clear that Michigan must come up with a solution to repair its broken roads. A funding solution that requires a higher sales tax, however, will be especially difficult for lower-income working families who already pay a greater share of their income in state and local taxes. Read the Full Report
Michigan League for Public Policy: Testimony to the Senate Finance Committee on SB 402
May 12, 2014
The Michigan League for Public Policy opposes Senate Bill 402. Across‐the‐board cuts in the state’s personal income tax will not create jobs or grow the economy in Michigan. They could, however, affect long-term prosperity by locking in cuts in funding for public schools, colleges and universities, and local communities—the very services and public structures that […]
Michigan League for Public Policy: Testimony to the House Tax Policy Committee on HB 5265-5267
May 12, 2014
The Michigan League for Public Policy opposes House Bills 5265, 5266, and 5267 because across-the-board cuts in the state’s personal income tax will not create jobs or grow Michigan’s economy. In fact, revenue reductions associated with income tax reductions could affect long-term prosperity by locking in cuts in funding for colleges and universities, local communities, […]
Michigan League for Public Policy: Slicing Up the Income Tax Cut Proposal
May 12, 2014
Proposals to roll back the personal income tax in Michigan will not create jobs or grow our economy and will disproportionately benefit the wealthiest taxpayers the most. In fact, most of the benefits of a cut in the state’s personal income tax from 4.25% to 3.9% would flow to Michigan’s wealthiest taxpayers, according to an […]
Michigan League for Public Policy: Tax Cuts Won’t Grow the Economy
January 15, 2014
Across-the-board income tax cuts will not boost Michigan’s economy but would contribute to rising income inequality, and further drain resources from public schools, community colleges, universities, health care and public safety—the very services that fuel economic growth. Despite claims that income tax cuts create economic growth, there is no evidence that they generate the […]
Michigan League for Public Policy: The Path to Prosperity: Ten Steps Michigan Must Take to Strengthen Its Economy
November 13, 2013
Over the last decade, Michigan policymakers have addressed the state’s economic and fiscal problems largely through a combination of budget cuts, tax shifts and reliance on one-time revenues–under the mistaken assumption that the state could cut its way to prosperity, and create jobs and economic growth through reduced business taxes. In fact, the path to […]
Michigan League for Human Services: The Michigan EITC and Taxes Paid by Working Families
January 14, 2013
Even with a state EITC, low-income families pay more of their income in state and local taxes than the state’s wealthiest families. Read the Full Report (PDF)
Michigan League for Human Services: All Pain, No Gain
January 14, 2013
Michigan has a regressive tax system, meaning that lower-income people pay a bigger share of their income in state and local taxes than higher-income people. Gov. Rick Snyder’s plan would make it even more regressive, according to an analysis by the Institute on Taxation and Economic Policy, a Washington D.C.-based nonpartisan think tank. In fact, […]
Michigan League for Human Services: Tax Changes Hit Low-Income Families the Hardest
December 17, 2012
The tax package adopted by Gov. Rick Snyder and the Legislature last year will begin to take effect in 2012. Michigan’s business taxes will be reduced by $1.6 billion, while individual income taxes will increase by $1.4 billion, when fully implemented in Fiscal Year 13.1 These tax changes make Michigan’s tax structure even more regressive. […]
Michigan League for Human Services: Got Skin in the Game?
December 17, 2012
It is often said that families who receive government assistance do not have any “skin in the game,” meaning that they use government-funded programs but do not contribute to the revenue that funds these programs. But, as Benjamin Franklin said, the only things that are certain are death and taxes and everybody pays taxes. Wealth […]
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