One billion dollars in tax relief, signed, sealed, delivered.
The plan signed by Governor Gretchen Whitmer Tuesday morning will save thousands of dollars a year for seniors and working families, but maybe just as important as what is in the plan, is what isn’t.
“It’s a new day in Lansing and I’m excited to sign a $1 billion tax cut,” said Gov. Whitmer at the signing ceremony.
With the stroke of her pen, Whitmer cut $1 billion in taxes for Michiganders. One pillar being repealing the ‘retirement tax,’ saving seniors $1,000 a year.
Another being expanding the ‘Earned Income Tax Credit,’ saving working families more than $3,000 a year.
However, what was voted to pass, but will never come to be was the $180 rebate checks to every tax filer.
“I have to tell you, I was really surprised that they used a procedural mechanism to keep this from going into effect immediately, giving people relief,” said Whitmer.
In order for the checks to go out, they needed to by April 18. For that, they needed immediate effect. For immediate effect, they need broad Republican support.
They didn’t get a single Republican vote.
“As I look through quote, after quote, after quote, after quote, after quote, after quote from these leaders, they talk about giving people immediate relief,” said Whitmer. “And yet when it was time to put their names on the board to ensure this went into effect immediately, they chose not to.”
Republicans made the move to preserve a 0.2% state income tax rollback that is projected to go into effect without the checks. It also may be a sign that the GOP won’t be willing to support any more breaks.
“It’s never the end, you know there’s always opportunities to come back to the table and to do more,” said Whitmer.
That includes budget negotiations for next year. Those plans may have been shaken up thanks to a new report from Public Service Consultants.
“PSC has modeled a funding gap of about $3.9 billion a year,” said Maggie Pallone of PSC a non-partisan infrastructure group. “This funding gap represents an annual cost of Michiganders of $535.”
As the “Fix the Damn Roads” governor, Whitmer has stressed a need for adequate funding, but this report shows a need for a drastic revenue increase.
“Anyone who says it can be fixed overnight, or even over one decade, is dishonest or just doesn’t understand the seriousness of the issue,” said Whitmer. “But ultimately we are going to have to have a longer-term solution.”
All of these numbers are projections and estimates until the new budget is passed or at least the past fiscal year is closed.
“The books will be closed by the end of this month,” said Whitmer. “And we will have a lot better idea of what it’s going to mean writ large.”
