A check in the amount of $180 in ‘inflation relief’ is what Gov. Whitmer and the Democrats have planned for every Michigan taxpayer. A portion of Whitmer’s announcement was made alongside House Speaker Joe Tate (D-Detroit) and Senate Majority Leader Winnie Brinks (D-Grand Rapids) as part of a larger state Democratic plan that included proposals to roll back the retirement tax and boost earned income tax credits. Many Democrats believe that the proposal could potentially save Detroiters thousands of dollars.
Whitmer said Monday morning, “This is the largest tax break in decades.” Now before you decide on what your going to spend the money on, be advised that before taking effect, the plan must pass both chambers of the legislature. A check would be sent for each income tax return – so for a couple who jointly filed, one check would be sent.
A Democratic plan to lower MI costs was released last week. It included three aspects:
- By repealing the retirement tax, senior households would save $1,000 per year
- Low-income residents would receive $3,150 in tax returns by increasing the Working Families Tax Credit
- The state would provide residents with $180 tax rebate checks from its general fund
Republicans in Michigan are pushing for a broader tax relief plan by lowering the state income tax from 4.25% to 4.05%, rather than providing a check in the mail, the savings would be in the form of less income taxed at the end of the year. There would also be a $600 million reduction in taxes each year as a result of the tax reduction plan.