Mich. Democrats: restore low-income tax break

By: Associated Press Email
By: Associated Press Email

The battle over Michigan's earned-income tax credit is heating up in Lansing.

Democratic lawmakers in the House and the Senate have introduced proposals to fully restore the state's tax break for low-income earners at 20 percent of a similar federal tax credit. It's now 6 percent under changes approved by Gov. Rick Snyder and Republican lawmakers in a 2011 tax overhaul.

House Democratic Leader Tim Greimel of Auburn Hills says the tax break rewards people who chose work over welfare and shouldn't be a partisan issue.

But Republicans say Democrats don't have a plan to pay for the increase, which they say will cost the state about $252 million a year.

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