LANSING, MI (WKZO AM/FM) – Governor Gretchen Whitmer and Democratic legislative leader Monday officially unveiled their Lowering MI Costs Plan, which they say will deliver the largest tax break to Michiganders in decades ,
Senate Majority Leader Winnie Brinks and House Speaker Joe Tate joined Whitmer to announce details of their plan to roll back the retirement tax, boost the Working Families Tax Credit, and send inflation relief checks to every taxpayer in the state.
If approved, the plan would phase out the retirement tax over four years, saving 500,000 households an average of $1,000, while equalizing the exemption on both public and private pensions.
The plan quintuples the Michigan Working Families Tax Credit match of the federal Earned Income Tax Credit (EITC) to 30%, up from 6%. That would deliver an average combined tax refund of $3,150 to 700,000 families. The boost would be retroactive for tax year 2022.
The Democrats are also proposing to send $180 inflation relief checks to every Michigan tax filer.
“The #1 concern for Michiganders right now is costs,” said Governor Whitmer. “Our Lowering MI Costs plan puts money back in people’s pockets by rolling back the retirement tax, quintupling the Working Families Tax Credit, and delivering inflation relief checks to every taxpayer. Getting this done will help people pay the bills and put food on the table as inflation impacts their monthly budgets.”
Republican Senate Minority Leader Aric Nesbitt of Lawton criticized the plan, saying, “Frankly, when the state is sitting on a $9 billion surplus, we should be doing more than handing out a one-time annual rebate check that equals 49 cents per day.”
“I am concerned that Gov. Whitmer continues to fight against the anticipated automatic income tax rollback and push for a limited tax cut for retirees that will leave two-thirds of Michigan’s seniors behind. We should be working together to help all seniors and all families with ongoing tax relief.
