State Rep. Jeff Farrington today raised some concerns over a recent plan being pushed by Democrats in the House and Senate to raise the Earned Income Tax Credit (EITC). Currently Michigan covers 6 percent of the federal tax credit, which is more than 31 other states currently offer.
“Democrats have yet to answer the tough questions about their proposal to raise the EITC,” said Farrington, R-Utica, chair of the House Tax Policy Committee. “How do they plan to pay for this? What taxes do they plan to increase? What budgets do they plan to cut?”
The proposal that has been introduced in the Senate would cost the state approximately $252 million a year.
“We are willing to listen to any ideas that are brought forward,” Farrington said. “However, we are not willing to pass a bill that does not address the source of funding because the days of irresponsible budgeting are over.”