2015 House Bill 4609

House GOP road funding package (EITC repeal)

Introduced in the House

May 14, 2015

Introduced by Rep. Jeff Farrington (R-30)

To eliminate the state <a href="http://www.michiganvotes.org/2006-SB-453">earned income tax credit</a>, which grants recipients an amount equal to 6 percent of the federal EITC. The EITC is a refundable tax credit (or “reverse income tax”) that sends checks to low income workers, totaling around $115 million annually. This is part of a House package that generates $1.163 billion more for annual road repairs by 2019, mostly by reprioritizing current state spending.

Referred to the Committee on Roads and Economic Development

June 4, 2015

Reported without amendment

Without amendment and with the recommendation that the bill pass.

June 9, 2015

Amendment offered by Rep. Jim Townsend (D-26)

To tie-bar the bill to House Bill 4341, meaning this bill cannot become law unless that one does also. HB 4341 would impose a graduated income tax ranging from 3 percent on the first $20,000 of income ($40,000 for a joint return) to 10 percent on annual income above $1 million. The amendment would also make EITC repeal contingent on the House road funding package being enacted.

The amendment failed by voice vote

June 10, 2015

Passed in the House 57 to 52 (details)

Received in the Senate

June 11, 2015

Referred to the Committee on Government Operations

July 15, 2015

Reported without amendment

With the recommendation that the substitute (S-1) be adopted and that the bill then pass.