Preserving tax credit called a ‘major victory’ for Church

Detroit — Preserving a tax credit for the working poor was at the top of the Michigan Catholic Conference’s list of advocacy priorities for this year.

And after an uphill struggle, and plenty of back-and-forth with the state’s lawmakers, the Church’s public policy voice clearly had an impact. After it looked certain earlier this year that the credit would be eliminated in budget cuts, the state Legislature last week sent a reduced Earned Income Tax Credit (EITC) to Gov. Rick Snyder. The governor appeared likely to sign it, too.

“We’re considering this a major legislative victory,” said David Maluchnik, communications director for the conference, which speaks for Michigan’s bishops in the political arena.

The conference has long considered the EITC an important vehicle to help those who are working, yet still struggling financially, and their families out of poverty.

The state EITC mirrors a federal tax credit of the same kind. Though Michigan started out the year with a tax credit that would yield those who qualify an amount of 20 percent of the federal EITC, the Michigan tax credit that was sent to Gov. Snyder yields 6 percent.

Still, this is after the Republican majority caucus in the state House of Representatives positioned itself against preserving any of the tax credit in January.

“It had an interesting journey getting to 6 percent,” Maluchnik said, noting that the House initially made a small concession and agreed to a $25-per-child tax credit for those who qualified for EITC and had children.

“That was a very small start, but that was a step in the right direction,” he said.

Eventually, after much work and testimony on the conference’s part, Lt. Gov. Brian Calley and State sen. Mark Jansen, chairman of the Senate Reforms, Restructuring and Reinventing Committee, supported the conference’s position that approximately $105 million in tax benefits for the poor could be dedicated entirely to the EITC, and that it could — as originally planned — be distributed as a percentage of the federal credit.

In recent weeks, Gov. Snyder had made public remarks in support of the compromised EITC plan.

The conference still hopes that an EITC that equals 20 percent of the federal tax credit still can be attained when Michigan’s financial state improves.

Preserving the state EITC was the first major accomplishment to arise from the Michigan Catholic Conference’s advocacy with the new governor and Legislature.

Along with the EITC, the conference has been vocal about preserving the children’s clothing allowance, funding for indigent burials, and funding for state disability programs.
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