Michigan Democrats Unveil $180 Checks as Part of Tax Relief Plan

$180.

That’s how much money will be sent to every taxpayer in the state with the Democrat’s tax relief plan.

Late last week, Governor Gretchen Whitmer and the top Democrats in Lansing announced an agreement on a tax relief plan that would include repealing the retirement tax, expanding the Earned Income Tax Credit and “inflation relief” checks directly to Michiganders.

Monday, Gov. Whitmer announced those checks will be $180.

Over the last few weeks negotiation and debate in Lansing had been over the tax relief plans, how are Michiganders going to see the relief from their taxes and inflation? Repealing the retirement tax and EITC expansion were both things Republicans and Democrats agreed upon, but neither of those plans hit every Michigander. That is something Republicans wanted to see.

They wanted to see an income tax rollback that would be triggered because the state had such high revenues. The Democrats don’t seem as interested in that.

“This will be the largest tax break for working families and seniors in Michigan in decades,” said Gov. Whitmer.

According to the Executive Office, the details of the three legs include retirement tax, working families tax credit and inflation relief checks.

Retirement Tax:

The plan phases out the retirement tax over four years and ultimately puts an average of $1,000 back in the pockets of 500,000 households. Lowering MI Costs will equalize the exemption on both public and private pensions.

Working Families Tax Credit:

The plan quintuples the Michigan Working Families Tax Credit match of the federal Earned Income Tax Credit (EITC) 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. Lowering MI Costs makes this boost retroactive for tax year 2022, meaning families will get more money in their pockets this year.

Inflation Relief Checks:

The plan will deliver $180 inflation relief checks to every Michigan tax filer, providing immediate relief by putting money back in pockets. Ensures everyone receives some relief and builds on relief for working families and seniors.

The retirement tax and EITC changes were always part of the equation. What wasn’t settled was how broad relief would come. Now we know, a $180 check to everyone.

“The really helpful thing about this particular piece of the plan is we can move fast,” said Gov. Whitmer. “Obviously the vote will have to happen in both chambers and it will need immediate effect, so I welcome bipartisan support.”

The issue is the checks would most likely mean the state would no longer trigger a small income tax rollback, the idea Republicans have been backing.

“I think people would rather see something long-term that provides relief going forward,” said Rep. John Roth, Republican from Long Lake.

“What I don’t understand is why the governor doesn’t want to provide long-term tax relief for all working taxpayers here in the state of Michigan?” said Sen. Aric Nesbitt, the Senate Minority Leader.

The rollback would be 0.2%. Gov. Whitmer says a single parent making $30,000 a year would see $16 in savings.

“This $180 check dwarfs any help that doing nothing and hoping that something that may or may not go into effect, may assist people,” said Gov. Whitmer.

The tax cut, however, is ongoing. The check is one time. While Monday’s announcement offered some details, Republicans say more are needed before any negotiations can take place.

“I was cautiously optimistic on Friday,” said Nesbitt. “And now, as we’ve gotten more questions than answers, I’m more cautious than optimistic.”