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Whitmer to propose tripling tax credit for low-wage workers

It would restore the state earned income tax credit to 20% of the federal credit.

Credit: AP

FILE - Michigan Gov. Gretchen Whitmer addresses business leaders, Monday, Dec. 20, 2021, in Detroit. Michigan public schools can use non-teaching staff as substitute teachers the rest of the academic year under a law designed to address a shortage during the coronavirus pandemic. Democratic Gov. Whitmer announced Monday, Dec. 27, that she signed the bill last week, calling it a “temporary stopgap." (AP Photo/Carlos Osorio, File)

LANSING, Mich. — Gov. Gretchen Whitmer will ask lawmakers to triple Michigan’s tax credit for low- and moderate-income workers, putting on average an extra $350 a year into their pockets.

The proposal is to be unveiled in the Democratic governor's State of the State address Wednesday. It would restore the state earned income tax credit to 20% of the federal credit.

It was scaled back to 6% a decade ago as part of a Republican-written law that slashed business taxes. The refundable credit helps more than 730,000 families a year.

They get an average credit of $150, which would rise to roughly $500 under Whitmer's plan.

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