McDonald Rivett Proposes Expanded Tax Relief for Parents
State Senator Kristen McDonald Rivett is set to propose a new piece of legislation aimed at widening the Earned Income Tax Credit (EITC) for parents. During a primary election night gathering on August 6, 2024, in Saginaw, Michigan, she emphasized the needs of working families.
The proposed Working Parents Tax Relief Act, shared with CNBC, would allow qualifying single or joint filers to claim up to $5,500 for each of three children under four years of age. Additionally, this bill seeks to raise the maximum qualifying income for the EITC to nearly $100,000 annually and establish an improved monthly payment system.
This initiative aligns with the Democratic campaign’s focus on affordability, highlighting claims that Republicans and former President Donald Trump have not succeeded in easing costs for Americans. Polls indicate that the Democrats may hold an advantage as the 2026 midterm elections approach, potentially leading to a loss of Republican control in Congress.
McDonald Rivett noted, “Bringing a baby home is truly magical for parents, yet it’s also incredibly expensive. Parents of young kids are doing their best to manage mounting costs related to housing, childcare, and groceries.” She argued for immediate tax cuts, stating that the new bill could return significant money to families, helping them manage everyday expenses.
The EITC, which benefits low- to moderate-income workers, has historically provided significant tax relief. For context, the average EITC benefit was reported to be $2,894 for the 2024 tax year.
In the past, Congress has bolstered tax credits, notably through the American Rescue Plan in 2021, which increased the Child Tax Credit. Although it reduced child poverty, this expansion eventually expired without renewal, despite numerous efforts to reinstate it.
Given that Republicans control the House of Representatives, the chances of the McDonald Rivett bill passing seem slim. However, such proposals are crucial for Democratic messaging in this election period.
The bill has garnered backing from organizations like Third Way and Americans for Tax Fairness, reflecting its importance in the current political landscape. Zach Mueller from Third Way described the legislation as offering genuine relief to working and middle-class families.
While serving in the party, McDonald Rivett previously helped advance similar legislation in Michigan, raising the state’s EITC benefit from 6% to 30%. In 2025, local households reportedly received an average benefit of $3,856, according to the state Department of Treasury.
