Michigan Governor Gretchen Whitmer and top Democrat lawmakers have proposed a deal to provide $180 checks to all Michigan taxpayers in the state's biggest tax break in decades. The Lowering MI Costs plan will provide $800 million in relief to lower-income families and retirees, with an average of $1,000 a year in retirement tax repeal and $3,150 in Working Families Tax Credit increase. The plan will also repeal the 2011-enacted “retirement tax”, expand the Earned Income Tax Credit from 6% to 30% of the federal credit, and issue “inflation relief checks” in place of a potential cut in the state's personal income tax.
Senate Minority Leader Aric Nesbitt, a Republican from Van Buren County, said he is “cautiously optimistic” about Whitmer's commitment to tax relief. “When it comes to lower taxes, her actions have too frequently failed to match her words. Michiganders have too often played Charlie Brown to the governor’s Lucy as she yanks away her promises of tax relief at the last second,” Nesbitt said in a statement.
The proposal must still pass through the Legislature. Democrats hold majorities in both chambers, but the one in the House is slim, which means they would need some Republican support for the tax legislation to take effect immediately.
The announcement stated that the basis of their agreement would result in all Michigan taxpayers receiving inflation relief payments without specifying any amounts. Whitmer, Brinks, and Tate concurred to issue “inflation relief checks” to all Michigan taxpayers, the amount of which is unspecified. No announcement was made regarding the sum of the checks or when they would be sent out.
In November, the people of Michigan sent a strong message. Their desire is for leaders who will accomplish tasks that will assist their families to progress. Currently, inflation has caused the price of basic goods to rise, which is making it difficult for families to afford necessities and is putting a strain on household budgets. That’s why they sent us to Lansing to lower costs and put more money back into people’s pockets,” Whitmer, Brinks and Tate said in a joint statement. This needs to be accomplished as Michiganders deserve it, and with support coming from both sides of the aisle, they will benefit from extra money in their pockets this year.
0. “More details expected this week on state's targeted tax relief plan” Michigan Radio, 6 Feb. 2023, https://www.michiganradio.org/politics-government/2023-02-05/more-details-expected-this-week-on-states-targeted-tax-relief-plan
1. “Michigan AFL-CIO Condemns Calley's Hypocrisy, Calls for Retirement Tax Repeal – MI AFL-CIO” Michigan AFL-CIO, 1 Feb. 2023, https://miaflcio.org/michigan-afl-cio-condemns-calleys-hypocrisy-calls-for-retirement-tax-repeal
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6. “Whitmer, top lawmakers announce deal on Michigan income tax cuts” WJRT, 3 Feb. 2023, https://www.abc12.com/news/state/whitmer-top-lawmakers-announce-deal-on-michigan-income-tax-cuts/article_499169b4-a400-11ed-b073-876385978f0e.html
7. “Whitmer, Democrats pitch $180 inflation relief checks for tax relief” Detroit News, 6 Feb. 2023, https://www.detroitnews.com/story/news/local/michigan/2023/02/06/michigan-governor-gretchen-whitmer-democrats-pitch-180-dollar-inflation-relief-checks-for-tax-relief/69876475007/
8. “Whitmer, legislative leaders announce agreement on Michigan tax cuts” MLive.com, 3 Feb. 2023, https://www.mlive.com/politics/2023/02/whitmer-legislative-leaders-announce-agreement-on-michigan-tax-cuts.html
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