A massive tax break plan has been agreed upon and looks to be on the way to Michiganders.
Friday afternoon, Governor Gretchen Whitmer announced an agreement was reached, between her and Democratic leaders in Lansing, that will bring major relief to seniors and working families specifically, but also line the pockets of every tax payer.
Much of the debate in the first month of the legislature has been around this tax relief plan. How are Michiganders going to feel it? Who is going to get it? Is it going to be the repeal of the retirement tax? Is it going to be the expansion of the Earned Income Tax Credit? Or will it just be the income tax roll back because the state made so much money?
“We are poised to deliver the biggest tax relief to Michiganders in decades,” said Gov. Whitmer.
The plan is agreed upon, and now just has to be voted on, but the framework of a massive tax relief plan coming to Michiganders will include the repeal of the state retirement tax, impacting 500,000 homes, expanding the Earned Income Tax Credit, which will touch 700,000 homes.
And mentioned for the first time, a direct check to every tax payer in the state.
“We recognize inflation, and what it has cost and what it is meant,” said Gov. Whitmer. “So that we can help people now.”
It is not known what impact this will have on the income tax rollback the Republicans have been pushing to protect but the rebate checks deliver immediate relief for every Michigander, which the GOP has wanted.
“I anticipate, and look forward to, bipartisan support, because this is one of those opportunities that I think everyone in the legislature is going to want to be a part of,” said Gov. Whitmer.
Immediate reaction was mixed from the other side, with House Minority Leader Matt Hall saying, “the governor is trying to create a false choice. We are sitting on a $9 billion surplus. Michigan families do not have to choose between immediate relief and a permanent income tax cut. This latest scheme crafted behind closed doors appears to be the governor’s newest attempt to cancel the income tax cut that’s due to every Michigan family, worker, and small business this year and every year afterward.”
His Senate counterpart, Aric Nesbitt, is a bit more optimistic but wants to see the details first saying, “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.”
“You’ll have an idea of what all is in this particular bill, that will be voted on soon, on Monday”, said Gov. Whitmer.