Report: Poorest families hit 1000 times harder than rich by Michigan tax changes
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Report: Poorest families hit 1000 times harder than rich by Michigan tax changes
Published: Wednesday, February 01, 2012, 8:09 PM Updated: Wednesday, February 01, 2012, 8:27 PM
Rob South | rsouth@mlive.com By Rob South | rsouth@mlive.com MLive.com
LANSING - As tax season starts in full swing, a new report says low income families will be hardest hit by a state tax reform package passed last year.
While the changes don't take effect until the 2012 tax year, the Michigan League for Human Services hopes some credits helpful to the poor can be restored by then, particularly the $600 per-child tax deduction.
The League released a report that says the tax plan will hit poor families 1,000 times harder than wealthy households. Families making less than $17,000 a year would pay one percent more in taxes in 2012, while families making more than $334,000 would see their taxes go up by only .001 percent, the report states.
Gilda Jacobs, president and CEO of the League, wants to see a fair tax structure that doesn’t hit the poor harder than the wealthy.
“We want to be sure that we have shared sacrifice.” she says. “If you’re making $17,000 a year, this is going cost you about $100. That’s a lot of money to these people. That’s a car payment, that’s a winter utility bill. It’s huge.”
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