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State Senate Backs Scaled Down Earned Income Tax Credit

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(Lansing, MI) -- One of the casualties of Governor Rick Snyder's tax plans may get new life. The state Earned Income Tax Credit for low-income working families has been renewed in Senate negotiations, although at less than a third of its current level. The credit will be lowered to six-percent, and will be paid for by dropping a proposed 25 dollar-per-child tax credit and a special Homestead Property Tax exemption for the working poor. The current EITC credit is about 432 dollars for a qualifying family, but if approved, will drop to an average of just under 140 dollars.

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