Michigan Inflation Relief Plan Will Not Include $180 Individual Checks
Michigan lawmakers have finalized a plan to address inflation that was first proposed by Democrats in early February, however some of the initial components of the plane did not make the cut. Governor Gretchen Whitmer is set to sign the Lowering MI Costs Plan, which will eliminate the state’s retirement tax and increases low-income tax credits. Whitmer originally announced a $180 inflation relief check to all tax filers on Feb. 6, but the offer has since been rescinded. It was previously reported that Democratic legislators in the state House and Senate would anticipate significant Republican support for this plan. A supermajority was required for the bill to pass, but the relief checks were excluded in order to get Republican lawmakers on board in a limited time frame. Michigan Senate Majority Leader Winnie Brinks, spoke with press saying, “It’s unfortunate those won’t be going out. We were hoping we would be able to get Republican support for that. But unfortunately, they were unwilling to do so.”
Even though the $180 checks originally planned for tax filers seemed inadequate to some, Democratic leaders said the checks would help provide some immediate relief. It would have been impossible to roll back Michigan’s income tax rate from 4.25% to 4.05% if the $180 checks were issued, so instead, they were cut. According to Republican lawmakers, lowering tax rates would offer a more permanent solution to providing relief than checks. Senate Minority Leader Aric Nesbitt talked about Michigan’s income tax and the rollback saying, “Senate Republicans protected the automatic income tax rollback that is due to millions of Michigan residents who need permanently lowered taxes, not a one-time gimmick that disappears in one trip to the grocery store.”
Even with out the $180 relief checks, the new plan intends to provide some sort of relief to a wide range of Michigan residents. The Lowering MI Costs Plan eliminates the state’s retirement tax over four years. Officials say the plan would “equalize the exemption on both public and private pensions.”
