Michigan Low Income Families to Pay Higher Tax

Thank you, Governor Snyder. A report issued Monday says Michigan's low-income, working families will pay more state income tax next year.

Michigan's reduction of the earned-income tax credit will mean about $244 million more in state income taxes.

Who will be affected?

About 800,000 Michigan families claim the credit, mostly lower-income working families. Is this you?

Last year, lawmakers reduced the credit from 20% of the federal earned-income tax credit to 6%.

The Michigan League for Human Services says the smaller credit "may well put out of business" some businesses that cater to low-income families. Independent grocers, small auto repair shops and secondhand stores in rural communities are most likely to be impacted.

[CBS]