LANSING, Mich. — Gov. Gretchen Whitmer has signed the Lowering MI Costs Plan into law, rolling back Michigan’s retirement tax while expanding the Working Families Tax Credit.
The governor was joined by Senate Majority Leader Winnie Brinks and House Speaker Joe Tate, among other state lawmakers, when she signed House Bill 4001 Tuesday morning.
Under the newly signed legislation, changes to the retirement tax will save Michiganders $1,000 in 500,000 households, according to the Michigan governor’s office.
Furthermore, state officials say the reformed Working Families Tax Credit increases the amount in tax refunds awarded to 700,000 working families fivefold. That equates to an average of $3,150.
“Right now, families are facing the pinch and having tough conversations about how to make ends meet. Today, I am proud to sign a $1 billion tax cut for seniors and working families. Getting this done will help people pay the bills, put food on the table, and afford essentials like groceries and school supplies,” says Governor Whitmer. “It will ensure seniors can keep more of what they’ve earned over a lifetime of hard work and put money back in the pockets of 700,000 working families. I will continue to work with our legislative partners to build on this progress, grow our economy, and lower costs for every Michigander.”
We’re told the amendment to the Working Families Tax Credit, which matches the federal Earned Income Tax Credit, will increase from 6% to 30%, benefiting about one million children in Michigan.
Michigan Association of United Ways CEO Hassan Hammoud released the following statement:
“We are grateful to Governor Whitmer for signing the expanded EITC into law today, a move that will provide hundreds of thousands of Michigan families with an increased tax refund next year. Research from our ALICE reports tells us that nearly half of the children in the state live in households that fall below the ALICE (Asset Limited, Income Constrained, Employed) threshold. Expanding the EITC is a bold and much-needed investment in our working families and communities—and one that will help uplift some of our most vulnerable populations by providing them extra money to afford the essentials like food, rent, healthcare and transportation. We look forward to continuing to work with the legislature and Governor Whitmer to ensure that all Michigan families have the tools and resources they need to thrive.”
