LANSING – Opponents said Tuesday that Gov. Rick Snyder’s tax proposals would cost the state’s poorest families about ten times more than the richest Michiganders.
A release from the Michigan League for Human Services said those in the bottom 20 percent of household earnings would see their taxes increase by about 1.1 percent and those in the top 1 percent of earnings would see their taxes rise by 0.1 percent under Snyder’s plan, which includes replacing the Michigan Business Tax with a 6 percent corporate income tax and eliminating the state Earned Income Tax Credit, according to a report by the Institute on Taxation and Economic Policy, a Washington-based think tank.
League officials said cutting the EITC has the biggest impact on the amount those earning less than $17,000 annually would be expected to pay in taxes.
“Many people may not realize that we’re talking about a large tax increase on working families and seniors to pay for business tax cuts, ” said Karen Holcomb-Merrill, director of the League’s state fiscal policy project. “Seniors, working families and kids are not being asked to sacrifice in order to make sure needed services are available. Instead, they’re being asked to sacrifice so that most businesses will not have to pay any taxes at all.”
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