Gov. Whitmer announces ‘largest tax break for working families’
LANSING, Mich. (WILX) - Gov. Gretchen Whitmer gave out details on the Lowering Michigan Costs Plan, which she said will deliver the largest tax break to people in the state in decades.
Related: Gov. Whitmer unveils details of Lowering MI Costs Plan in Lansing
Whitmer along with Senate Majority Leader Winnie Brinks, and Speaker Joe Tate rolled the plan out Monday morning. It is expected to roll back the state retirement tax, boost tax credits for working families, and will send out inflation relief checks to taxpayers.
“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,” said Whitmer. “Getting this done will help people pay the bills and put food on the table as inflation impacts their monthly budgets. I am proud that we are hustling to get this done and deliver real, immediate relief to Michiganders.”
The plan would phase out the retirement tax over 4 years while putting an average of $1,000 into 500,000 households. The plan would equalize the exemption on both public and private pensions.
Meanwhile, the Lowering MI Costs Plan would increase the Michigan Working Families Tax Credit match of the federal Earned Income Tax Credit to 30%, up from 6%.
“It delivers an average combined tax refund of $3,150 to 700,000 families, directly impacting nearly one million kids—almost half the kids in Michigan,” said the Michigan Executive Office of the Governor. “Lowering MI Costs makes this boost retroactive for tax year 2022, meaning families will get more money in their pockets this year.”
It is also expected to deliver $180 inflation relief checks to every Michigan tax filer which would make sure everyone would receive some relief, especially working families and seniors.
“When you’re helping retirees living on a fixed income, and you’re helping families who are working full time but are struggling to get ahead, and you’re putting money in the pockets of all Michiganders,” Whitmer said. “That’s something we are hearing a resounding enthusiasm for.”
The Inflation Relief Check portion of the plan needs to go through the legislative process before anyone sees the checks. It needs to pass with a two-thirds majority for anyone to get a relief check in the spring.
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