House Republicans Measure Tax Cut Plan Against Governor Whitmer’s

Governor Gretchen Whitmer unveiled her plan for major tax cuts two weeks ago. Now, the House Republicans have theirs.

The governor proposed big tax credits, bonuses and tax cuts for essential workers, low income families and seniors. Republicans want relief for everyone.Gop Tax Plan Pkg 2 28 2200 00 11 01still001

“Lowering the income tax is not a bad thing,” said Jack O’Malley, R – Lake Ann. “Personally, I wish we could do away with it.”

Late last week, House Republicans unveiled their tax plan for the next budget. The biggest piece? Shifting the state income tax rate from 4.25%  to 3.9%.

“Lowering it, I think that’s a sign of just respect to people,” said O’Malley. “So that they understand that we’re lowering it and we can argue about the numbers.”

Also, an infusion of cash, $1.5 billion, for municipalities struggling to cover employee pension funds.

“This would be a one time payment that would help get everybody, all the counties that are in trouble,” said O’Malley.

Their plan would also streamline the pension tax system by expanding eligibility.

“I think that is for everybody and I think that makes a lot of sense and that will will help a lot of people,” stated O’Malley.

Governor Whitmer wants tax cuts, but cuts that are much more targeted.

“I think as we talk about tax fairness, the first thing to do is alleviate the shift that was put on to our senior citizens and our working families,” said Gov. Whitmer. “That’s what I’ve proposed.”

She says to do away with all retirement taxes and offer bonuses for essential workers while expanding the earned income tax credit.

“To try to give relief to those parts of our state that held this burden,” said Whitmer. “Now we have an opportunity to make it right.”

Shallow relief for everyone? Or deep impactful relief for some? That seems to be the debate point in this year’s budget.

“Everybody has drawn the line,” said O’Malley. “And now there will be discussion.”