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Congressman Dan Kildee Introduces Legislation to Cut Taxes for Michigan Workers and Families

June 6, 2019
Press Release

Bill Would Boost Child and Earned Income Tax Credits, Benefiting 3,450,000 Michiganders, Including 1,475,000 Children

Congressman Dan Kildee (MI-05), Chief Deputy Whip of the House Democratic Caucus, today introduced legislation to reduce taxes for working families by expanding the Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC).

The EITC is a refundable tax credit for low-income workers and the CTC is a tax credit of up to $2,000 per qualifying child for those raising a family. The Working Families Tax Relief Act would expand these tax credits that have already been successful and effective at lifting many American families out of poverty, helping to grow the middle class and put money in the pockets of working people.

“Michiganders are working harder than ever but still struggling to make ends meet. Americans deserve a tax code that puts working families first. I am proud to introduce this legislation to help put money back in the pockets of working people and families raising children. Expanding the Earned Income Tax Credit and Child Tax Credit will help millions of American families get a foothold in the middle class,” Congressman Kildee said.

“I strongly support the Working Families Tax Relief Act. In Pennsylvania alone, it would help more than 4 million people, including 1.7 million children. This would be a powerful way to lift working people and their kids out of poverty. It’s time for a tax cut for working people who haven’t benefited much, if at all, from the current economy or the Trump-Republican tax cut that was skewed so heavily to the rich and the big corporations,” said Congressman Dwight Evans (PA-03), who joined Congressman Kildee in introducing the House bill.

The Working Families Tax Relief Act would:

  • Expand the EITC for families with children by approximately 25 percent. Families with children would receive more resources to pay for child care, health care and other needs.
  • Significantly expand the EITC for workers without children and make the credit available for people starting at age 19 up to age 67. Currently, workers without children can still be pulled under the poverty line by their tax liability. An expanded EITC will help prevent this.
  • Allow workers to draw a $500 advance payment on their EITC. Four in 10 Americans say they couldn’t afford an emergency expense of $400 without borrowing money or selling assets. This bill would make sure families aren’t forced to turn to predatory payday lenders when the car breaks down or other unexpected expenses come up.
  • Make the CTC fully refundable and adjusted for inflation, so the more than 26 million children who were left out of the Republican tax bill get the support they deserve.
  • Create a Young Child Tax Credit to provide extra support to children five and under, when research says they need it most.

Senator Sherrod Brown (D-OH) recently led 45 Democrats in the U.S. Senate in introducing the Senate companion bill.

“All across the country, families are working harder than ever but have less and less to show for it. Corporate profits have soared, executive compensation has exploded, but wages are flat. Meanwhile the cost of everything from health care to education and housing is up,” said Brown, who led the Senate Democratic caucus in introducing the Working Families Tax Relief Act in April. “Our bill would help put more money back in the pockets of working families and set children up for future success. I thank Rep. Kildee for his hard work on this. I’m honored to have him as our House partner in this effort.”

According to the Center on Budget and Policy Priorities, the Working Families Tax Relief Act would boost the incomes of 46 million households and 114 million people, including 43 million children. It would also lift 7 million people out of poverty, including 3 million children. In Michigan, the bill would benefit almost 3.5 million individuals, including almost a million and a half children.