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‘Changing Rules Midstream,’ Tax Reform Brings Plans to Change Senate Rules

Less than two months into the new legislature and trust is starting to wane between the two parties as crucial tax cuts hang in the balance.

The major tax reform plan that would repeal the retirement tax, expand the earned income tax credit and send $180 checks to each filer, was rushed through the House two weeks ago.

Last week, the Senate voted on it to pass but it didn’t quite get all the support Democrats wanted and now the future of the chamber rules is in question.

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In the State Senate, if you want a bill to pass you just need one more vote than the other side and it passes but if you want that bill to take immediate effect you need 2/3 of the vote. That means a major bipartisan support to get it through.

The major tax reform plan passed, but not with that immediate effect, and that really changes the impact the plan will have, unless the rules are changed.

“There will be a response,” said Sen. Winnie Brinks, the Senate Majority Leader. “Exactly what it looks like, we’ll find out. I believe there’s a chart for that.”

Two weeks ago, when the Senate was set to vote on Governor Gretchen Whitmer’s major tax reform plan, the Republicans pulled a sly move to adjourn session and avoid the vote. It appears the Democrats are looking to respond by removing immediate effect rules and thus getting their way.

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“If that goes through, they are changing the rules midstream and that’s not right,” said Sen. John Damoose, Republican from Harbor Springs.

If the plan is voted to go into effect right away, we all get $180 checks. If it does not, there’s no checks but instead a 0.2% income tax break.

“That’s the leverage we have right now. We don’t want this to go into effect right away because that’s what eliminates the automatic tax roll back,” said Sen. Damoose. “Which is the thing we are fighting for.”

“Getting those checks out the door would’ve been urgent, getting earned income tax credit dollars into people’s hands and into their household budgets within days, that’s what’s urgent about this,” said Sen. Brinks.

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Tuesday, the expectation was to vote on removing immediate effect, a decades old safeguard.

Instead, no vote came.

“To just change the rules, I guess they could just steam roll everything but the bottom line is that it’s not setting a good precedent for working across the aisle,” said Damoose.

The new majority has been a rocky one as each side gets used to their new roles and flexing what power they have.

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“We just had another resolution put up this morning that we had no idea it was coming,” said Damoose, “We had no idea what it was. I have now made a decision, I will not vote on anything, vote yes on anything, if I don’t have time to review.”

The Senate is back in session Wednesday, again with nothing on the agenda. Any vote on the tax plan, would be a last minute decision.

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