Study: Michigan among states raising poor's taxes - WNEM TV 5

Study: Michigan among states raising poor's taxes

Associated Press

LANSING, Mich. (AP) - A study says Michigan is among just a handful of states raising taxes on low-income working families to finance tax cuts for other groups.

The Washington-based Center for Budget and Policy Priorities released its report Tuesday. It says Michigan, New Jersey and Wisconsin have scaled back tax credits for low-income workers in recent years while cutting business taxes.

Michigan Gov. Rick Snyder originally wanted to eliminate the state Earned Income Tax Credit, but agreed to reduce it from 20% of the federal credit to 6% for tax year 2012.

Qualifying families now getting about $430 annually from the credit will get $130 to $140 under the reduction.

Meanwhile, two-thirds of Michigan businesses next year will be exempt from paying corporate income taxes, saving them $1.1 billion.

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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