The “Nerd” and new governor of Michigan Rick Snyder is coming in doing exactly what we anticipated; cutting tax exemptions for the poor and leaving breaks for corporations in place. Snyder is pushing to eliminate the Michigan Earned Income Tax Credit, which benefits low income workers. If is is passed, it would save the state about $360 million dollars. Great. Snyder is also pushing for a $1.2 BILLION tax CUT for Michigan businesses, hoping it will create more jobs. So, to recap, taking away $360 million from low income Michigan residents is a measure to balance the budget, but letting big business keep almost three times that amount is okay? Roughly 780,000 families received the tax credit in the 2009 fiscal year. Snyder defended the plan on Friday by saying the money would go to help Medicare in the state, though later admitted only roughly 20% of that tax would actually find its way to benefit Medicare recipients.
“Heil! I mean, Hey!” ~ Gov. Rick Snyder
In addition, without the METIC, an additional 25,000 families would fall below the poverty line in the state. To give my Dear Readers a rough idea of the amount of money the METIC equates to annually per household, a couple of two with an annual income of $30,000 would receive a credit of $643, or roughly enough to pay a year’s worth of utilities.