Michigan offers new child tax credit program

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The federal version of the expanded child tax credit, introduced by the American Rescue Plan Act in 2021, expired late last year. Also, by all indications, negotiations in Congress to extend the child tax credit for another year are going nowhere. There are already signs that the lack of such credit has led to an increase in child poverty in the United States.

However, some states have been working to enact their own child tax credits, while others have such proposals pending in their legislatures. One of these states is Michigan.

According to Detroit News, the Michigan House this week passed a $2.5 billion plan to both cut taxes and implement a $500 child tax credit. The bill was pushed by Republicans in the House, although it also got Democratic votes.

“If we can’t do it now, as we look at billions of dollars of surplus, we never will,” Rep. Matt Hall, chairman of the House Fiscal Policy Committee, told the newspaper. .

In mid-February, by Click Detroit, the Michigan Senate passed a slightly different plan, though it also included a $500 child tax credit. This week, Republicans in both houses reached agreement on a compromise that includes the child tax credit.

The office of the state’s Democratic Governor, Gretchen Whitmer, said this week that it was “time to sit down around the table to negotiate a bipartisan deal.” The Associated Press reported that the Republican deal alone would be vetoed by the governor.

“Legislation making its way through the legislature is unsustainable and would later result in tax hikes for Michiganders or result in some of the biggest funding cuts to schools, roads and community police protection.” , said a Whitmer spokesperson. Associated Press.

“We are making a structural change that will drain our state government for years, decades, generations to come,” state Rep. Yousef Rabhi, a Democrat from Ann Arbor, told The Associated Press. opposing the Republican Accord. “It will hamper our ability to respond to a recession. … There is nothing more fiscally irresponsible than what is being proposed here today.”

Whitmer, a frequent lightning rod in debates over pandemic restrictions, faces re-election this year as she seeks a second term as governor. Potential Republican opponents include chiropractor Garrett Soldano, millionaires Kevin Rinke and Perry Johnson, former Detroit police chief James Craig and commentator Tudor Dixon. The primary will take place in August.

Stephen Silver, technology editor for The National Interest, is a journalist, essayist and film critic, who also contributes to The Philadelphia Inquirer, Philly Voice, Philadelphia Weekly, the Jewish Telegraphic Agency, Living Life Fearless, Backstage magazine, Broad Street Review and connect today. Co-founder of the Philadelphia Film Critics Circle, Stephen lives in suburban Philadelphia with his wife and two sons. Follow him on Twitter at @StephenSilver.

Picture: Reuters.


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