News Round Up: March 7, 2022
Top Story: The Michigan House approved a $2.5 billion tax reduction plan that will create a $500 Child Tax Credit (CTC) while cutting personal income tax rates and offering tax exemptions to seniors. However, Governor Gretchen Whitmer’s office argues the plan is financially unsustainable and would result in tax spikes or cuts in community funding and is pushing for a separate plan that includes expanding the state’s Earned Income Tax Credit (EITC). (The Detroit News)
- A new senate bill introduced by Senator Mario Scavello (R-Scotrun) could add Pennsylvania to the list of states that offer an EITC. Senator Scavello’s bill would create a state-level EITC that phases in at 10 percent of the federal credit in 2023, eventually reaching 25 percent by 2031. (The Center Square)
- Michigan Governor Gretchen Whitmer encouraged and reminded Michiganders to claim the federal and state EITCs when filing their 2021 income taxes. (The Office of Governor Gretchen Whitmer)
- Democratic lawmakers in the Connecticut House and Senate hope to permanently expand the state’s EITC. Governor Ned Lamont used federal pandemic funding to temporarily expand the tax credit and is waiting to see the state budget for next year before supporting a permanent expansion. (Connecticut Public Radio)
- President Biden spoke about the importance of extending the enhanced CTC, among other financial support plans outlined during last week’s State of the Union address. (TCWF)
- The Internal Revenue Service (IRS) has suspended the CTC web tool – intended to help non-filers – over concerns it was confusing tax-filers. (Politico)