Dems’ proposal calls for $180 check for tax filers
Retirement tax would go away, income tax rate would drop
State Democratic leaders floated a tax break Monday that could lead to direct payments to Michigan taxpayers.
Dubbed the Lowering MI Costs Plan, Gov. Gretchen Whitmer, Senate Majority Leader Winnie Brinks, and Speaker Joe Tate rolled out the plan Monday morning. They say it will deliver the largest tax break to Michiganders in decades, saying in a release it will roll back the retirement tax and boost the working families tax credit in addition to providing checks of $180 to taxpayers.
The total cost, which would be paid out of the state general fund, will run around $800 million. The checks would go to all filers regardless of whether they owe taxes or received a refund.
“The No. 1 concern for Michiganders right now is costs,” Whitmer said in a release. “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.”
House Minority Leader Matt Hall (RRichland Township) criticized the nuances of the plan, which he said have not been divulged by Whitmer.
“There’s still so much we don’t know, and we need to protect the permanent, ongoing relief that’s teed up for Michiganders and small businesses,” he said in a statement published on his website. “Gov. Whitmer says there are no secrets or surprises in her proposal, so why won’t she show it to legislators or the people of Michigan?”
Following up on talk that was prominent by Democrats on the campaign trail this fall, the plan would also eliminate the retirement tax enacted in 2013 under former Governor Rick Snyder, a Republican. Finally, the plan would reduce the state income tax rate from 4.25% to 4.05%.
“House Democrats heard from Michiganders across our state that they want us to repeal the retirement tax,” said House Speaker Joe Tate (D-Detroit). “Their priorities are our priorities. With the passage of this plan, we are making good on our promise to the people of Michigan.”