GRAND RAPIDS, Mich. (WOOD) — The Democrats who now control Michigan’s government are rolling out a plan to get rid of the pension tax and expand tax credits.
Under the proposed Lowering MI Costs plan, the repeal of the pension tax would save about 500,000 households about $1,000 annually, a Friday release said. The release also said the expansion of the working families tax credit (formerly known as the earned income tax credit) would return $3,150 annually to about 700,000 households.
The proposed plan would also send inflation relief checks to taxpayers.
The deal is the product of work by Gov. Gretchen Whitmer, Senate Majority Leader Winnie Brinks of Grand Rapids and House Speaker Joe Tate of Detroit, all Democrats.
“Michiganders sent a clear message in November. They want leaders who are going to get things done that help their families get ahead,” the three said in a joint statement. “Right now, inflation has driven the cost up on everyday goods, which is squeezing household budgets and forcing families to forego necessities. That’s why they sent us to Lansing to lower costs and put more money back into people’s pockets. … It’s time to get this done because Michiganders deserve it, and with bipartisan support Michiganders will see more money in their bank accounts this year.”
After details of the plan started to become public Friday, multiple Republicans released statements on the matter.
Senate Republican Leader Aric Nesbitt said his party is ‘cautiously optimistic that Gov. Whitmer may finally be heeding our call for immediate inflation relief for Michiganders’ but questioned her long term plans.
“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,” Nesbitt said.
Meanwhile, Michigan Representative Sarah Lightner struggled to find any positives and was upset the plan was allegedly put together behind closed doors.
“Don’t let the governor’s shell game fool you,” Lightner said. “Handing out one-time checks to Michigan taxpayers is nothing more than a ploy to distract people from the permanent income tax rollback she’s blocking.”
The plan must still make its way through the Legislature. Democrats hold majorities in both chambers, but the one in the House is slim.