We need to narrow Michigan’s income gap

It’s no secret—income inequality exists in Michigan. However, when nearly 1 in 4 kids still live in poverty in the state and when too many Michigan residents must cobble together multiple part-time jobs just to barely make ends meet, income inequality is a problem. And more must be done to lift our most vulnerable residents to help narrow the gap.

money 22x moreA new fact sheet released by the League begins to explore Michigan’s income gap, the issues it causes and what can be done to reduce the disparity. According to a recent report, Michigan is the 11th most unequal state in income in the nation, with its top 1% earning 22 times more than the rest of its workers. Over the past 30-plus years, income growth for top earners far outpaced growth of the bottom 99%. Since the end of the Great Recession in 2009, incomes for the top grew by over 26% while incomes for the rest of the state stagnated.

Income inequality is a much bigger and broader issue than simply the top compared to the rest of us. Income gaps exist regionally, between genders and along race and ethnicity lines. In Michigan, median incomes for full-time working women continue to trail those of men by nearly $13,000, and workers of color made $3 less per hour than white workers. These disparities exist regardless of educational attainment.

We need to fix income inequality. The income gap affects Michiganians’ abilities to pay for healthcare or save for retirement or a child’s college education. And while income disparities exist at the national level, Michigan can implement state policies to help narrow the gap including:

The League will continue to highlight this important issue in a series of fact sheets. Income inequality is a persistent and increasing problem in Michigan, hurting Michigan residents, communities and the economy, and state policymakers must do more to bridge the divide.

— Rachel Richards

A banner year for better policy

It is 2016. A new year with new hopes, and a new set of challenges.

But before we look ahead, I want to take a moment to reflect on 2015 and what you have helped us accomplish. (From here on out, when I say “we” or “our,” know that I am including you, because the League’s work is all thanks to you.) When fighting the good fight, the victories can sometimes be few and far between, so it’s important to celebrate the ones we get, big or small. (more…)

The 2015 roads plan: Helps wealthy and hampers budget

It seems like all we’ve talked about in Michigan for the last four or more years are roads. Despite the annual construction work on seemingly every road we’re taking in the summer, our roads were getting worse. Hitting a pothole had become an understandable excuse for running late to work, a date or family dinner. And we have all heard the one about the pothole so large you could probably swim in it. (more…)

The time is now to protect federal working family credits

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I hope you all had a wonderful Thanksgiving, surrounded by family and friends and all the food and fixings you could hope for. But many Michigan families are still struggling and could soon be making due with close to $1,000 less in their family budgets if Congress doesn’t translate the rhetorical goodwill of the holiday season into actual action to help those in need.

I know I’ve been talking about this issue for several months, and I hope you are all already aware of why the federal Earned Income Tax Credit (EITC) and low-income portion of the Child Tax Credit (CTC) are so important and why the expiring provisions of these credits should be made permanent. But the need is extremely urgent now. (more…)

Veterans Day: You’ve sacrificed enough

Every year on November 11th, we as a nation thank those who served for the sacrifices they made in protecting our freedom. We honor a great uncle who served during World War II, a parent who fought in Vietnam, or a cousin who just returned from a final tour in Afghanistan. While it is important that we take a day to remember our veterans, it’s equally important to make sure veterans have the resources to return to their lives and provide for their families. (more…)

Two generation policies offer support for parents and kids

On Monday, October 26th, the Michigan League for Public Policy held our annual meeting and public policy forum, “Secure Parents and Successful Kids.” We were joined by more than 250 people from around the state and a host of national and state experts and innovators in the fields of education, economic security and child well-being to discuss a two-generation approach to tackling poverty. (more…)

More needs to be done to address economic disparities for kids and families

As we approach the beginning of the state’s 2016 budget year, the League’s latest report weighs in on whether or not lawmakers have made the investments needed to give all Michigan residents a chance to succeed. It concludes that more needs to be done to ensure that children get a healthy start in life and a high-quality education, and their parents have the skills and resources required to succeed in the workplace.

The report outlines both wins and losses for Michigan children and their families in the 2016 budget, but the greatest concern raised is the ongoing failure to invest in programs that can lift children out of poverty and create the economic security needed to overcome deep and discouraging disparities based on income, race and place. (more…)

Hard work, the American dream and tax credits

On Monday, we as a nation celebrated Labor Day. While—unfortunately—many people see it only as a day off of work, a day full of sales at the mall, and the last big grill out of the summer, Labor Day was actually established to pay tribute to the contributions and achievements of American workers. On a day that celebrates the value of work, it’s also a good time to reflect on two of our nation’s best pro-work tools and the workers they help. The federal Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC) keep millions of working families out of poverty and support a diverse array of professionals across the country and around Michigan. (more…)

Michigan families need federal action on EITC, CTC

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While much attention has been focused recently on protecting the Michigan Earned Income Tax Credit (EITC), there is equally urgent action needed in Washington to save critical pieces of the federal EITC and Child Tax Credit (CTC). The federal and Michigan EITCs combine to provide much-needed support to help working families rise out of poverty, and we have to fight this battle on multiple fronts in order to protect these valuable tools.

The three provisions of the federal EITC and CTC that are set to expire are: a larger EITC for families raising three or more children; a reduction in the EITC “marriage penalty” that some two-earner families face; and a lower CTC earnings exclusion that expands the credit to very low-income working families. These stipulations are critical to helping millions of Americans and hundreds of thousands of Michigan residents make ends meet and afford the very things that keep them working, such as child care and transportation. (more…)

Young but not invincible: Young adults rely on credits too

When I graduated law school in 2008, I got rejection letter after rejection letter. I applied for every job you could imagine – part time, full time, hourly, salaried – the jobs just weren’t there. I eventually landed in a great office, but many millennials–those born between 1981 and 1997—who were just graduating high school, college, or from graduate programs, weren’t so lucky. (more…)

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