SOUTHFIELD, Mich. (WXYZ) — “This will be the largest tax break for working families and seniors in Michigan in decades,” Michigan Gov. Gretchen Whitmer said.
The plan calls for a four-year, phase-out of the retirement tax on pensions enacted in 2011. When fully implemented, the governor says an average of about $1,000 will go back into the pockets of a half million residents.
It would also increase the Earned Income Tax Credit for lower-wage families from 6% to 30% of the federal credit, retroactive to 2022. That would impact 700,000 families.
The $180 inflation relief checks, as the governor calls them, would go to everyone who files a tax return. Couples filing jointly would receive one $180 check.
“If this one is surplus, no money’s being printed by the federal government, then I think, I mean, why not. If you have extra, then give it back to the taxpayers. I think that’s a good move,” Ryan Lattani said.
Depending on the size of your vehicle and gas tax, the inflation relief check could help you by four or five trips potentially to the gas station, or a couple of trips for a family at the grocery store.
“One hundred and eighty dollars, I think, depending on the size of the family, that’s probably just an extra week of groceries, which definitely helps with everything that’s going on with inflation,” Icesis Reed-El said.
“If it doesn’t hurt us in the long run, I’d welcome it with open arms,” Sean Davis said.
State Sen. Jim Runstead, a Republican from White Lake, said this plan could prevent a trigger of a personal income tax rollback to 4.05% from 4.25%.
“I would say, do you want $180 one time or $100 every year for the next 20 years? I think the people would take the $100 every single year as opposed to the one-time $180. That’s what this is about,” Runstead said.
“She wants to give the $180 to buy off. What you would get annually is about an average of $100 off of your taxes, so it’s a gargantuan loss to the taxpayer that she’s trying to put a bunch of whipped cream on this horrible mess and make it sound good,” Runstead said.
“This $180 check dwarfs any help, that you know, doing nothing and hoping that something that may or may not go into effect might assist people,” Whitmer said.
