By AP
LANSING, MI –
A study says Michigan is among just a handful of states raising taxes on low-income working families to finance tax cuts for other groups.
The Washington-based Center for Budget and Policy Priorities released its report Tuesday. It says Michigan, New Jersey andWisconsin have scaled back tax credits for low-income workers in recent years while cutting business taxes.
Michigan Gov. Rick Snyder originally wanted to eliminate the state Earned Income Tax Credit, but agreed to reduce it from 20 percent of the federal credit to 6 percent for tax year 2012.
Qualifying families now getting about $430 annually from the credit will get $130 to $140 under the reduction.
Meanwhile, two-thirds of Michigan businesses next year will be exempt from paying corporate income taxes, saving them $1.1 billion.