LANSING, Mich. (WLNS) – Some good news for families in need and seniors, the Michigan legislature is moving toward a tax cut for those citizens that could save them between $350-$1,000 a year.
Some 700,000 underprivileged citizens who earn under $57,000 a year are in line for a possible tax cut first offered in 1975 by then-President Gerald Ford of Michigan.
Gov. Gretchen Whitmer and her team are joining with legislative Republicans to expand the tax credit at a savings of about $350 a year. They disagree on how much the cut will be, but they can work that out.
“This is a moment to be optimistic and be excited about where we are headed,” Whitmer said.
Ever since former Republican Gov. Rick Snyder adopted the so-called senior retirement tax, Democrats have fought unsuccessfully to kill it.
Now that the Democrats control the legislature, they hope to phase out the tax over four years.
But there is a major rub.
House GOP leader Rep. Matt Hall explains that his plan to reduce the tax cut does not eliminate it. He argues the Democratic plan only includes public pension retirees, while the GOP plan hits everyone with a retirement check.
If the two sides can work out their differences, about 500,000 seniors could see a tax cut of about $1,000, give or take.