Tax Changes Could Hit Low-Income Residents HardestTax Changes Could Hit Low-Income Residents Hardest

3/9/13 - The state government approved significant tax cuts for businesses last year, but with Tax Day approaching policy experts are saying low-income families could be picking the slack. Governor Rick Snyder and the state legislature approved $1.6 billion in business tax cuts last year as a way to encourage business growth in Michigan. However, tax credits to individuals were reduced to make up for the lost revenue. Most significantly, the Earned Income Tax Credit was reduced and the Child Tax Credit was eliminated. Karen Holcomb-Merrill, policy director for the Michigan League for Public Policy, says this will hit low-income families the hardest. She says this is bad news for communities since these residents typically cannot afford to save money and so spend it right away, driving the local economy. She says she is hopeful that legislators will restore the Earned Income Tax Credit for the next fiscal year. (TD)