LANSING, Mich. (WLNS) – Lawmakers passed a bill on Tuesday that delivers a $1 billion tax break to seniors and working families and rolls back the retirement tax.
Gov. Gretchen Whitmer’s office said the Lowering Michigan Costs plan will save 500,000 households an average of $1,000 a year and quintuple the Working Families Tax Credit to give 700,000 Michigan citizens an average refund of $3,150.
The bill also includes an increase of the state Earned Income Tax Credit from 6% to 30% of the federal tax credit.
The Michigan League for Public Policy applauded the legislation’s passing.
“Over 700,000 families around the state, in rural, suburban, and urban areas, will benefit from this new law. Plus, Michiganders spend their tax credits at local businesses, keeping money flowing through our towns and cities and strengthening the economy,” said Laura Ross, communications director with the Michigan League for Public Policy.
House Republican Leader Matt Hall was more critical of the legislation.
While praising the tax relief for seniors, he said in a press release that the bill “is an attempt to avert an automatic income tax rollback for individuals and small business that will be triggered this year based on increased revenues.”
