Michigan Democrats offer Michiganders $180 inflation relief check
(The Center Square) – Michigan Democrats say they want to give Michiganders a $180 check.
The three-pronged plan aims to reduce the retirement tax, boost the earned income tax credit, and deliver a $180 inflation check to every Michigander who files their taxes.
“The #1 concern for Michiganders right now is costs,” Whitmer said in a statement. “Our Lowering MI Costs plan puts money back in people’s pockets by rolling back the retirement tax, quintupling the Working Families Tax Credit, and delivering inflation relief checks to every taxpayer. Getting this done will help people pay the bills and put food on the table as inflation impacts their monthly budgets. I am proud that we are hustling to get this done and deliver real, immediate relief to Michiganders.”
It’s unclear whether the proposed inflation check would replace an incoming permanent tax break for all Michiganders. Michigan is projecting a $9.2 billion surplus.
Media reports last week said Whitmer is pondering a loophole to avoid giving all Michiganders a tax break as required by a 2015 law. As part of a road funding deal, Michigan Republicans passed a law that Michigan’s 4.25% income tax rate would decrease to 4.05% if the state’s general fund grows faster than the rate of inflation in any year starting in 2023.
The report said that Whitmer’s office wants to tie a policy dodging the drop in state income tax to a tax-credit expansion for businesses.
House Speaker Joe Tate, D-Detroit, welcomed the proposal.
“House Democrats heard from Michiganders across our state that they want us to repeal the retirement tax,” Tate said in a statement. “Their priorities are our priorities. With the passage of this plan, we are making good on our promise to the people of Michigan. Lowering MI Costs gives retirees back their hard-earned money, puts dollars into the hands of working families, and delivers much-needed relief from inflation for people across our state. This is meaningful relief at a time when Michiganders truly need it.”
House Republican Leader Matt Hall, R-Richland Township, said that Whitmer refuses to say whether she will “obstruct” permanent tax relief for every Michigander.
“She either isn’t familiar with the details of her own plan, or she’s trying to hide a secret tax hike from the people,” Hall said in a statement. “Why would the people of Michigan give up a permanent tax cut for a small, one-time payment of $180? Gov. Whitmer must stop dodging and start delivering real, permanent relief to Michigan families.”
Americans for Prosperity-Michigan state director Annie Patnaude called the tax plan a “tax sham.”
“Her plan blocks a lifetime of tax relief for 100% of income taxpaying households in exchange for a one-time gimmick,” Patnaude said in a statement.
Patnaude said the average US family saw $460 of inflation monthly.
“It’s clear the Governor doesn’t understand the impact of inflation on Michigan families,” Patnaude said. “The average family in the US has struggled under inflation totaling $460 per month, but Governor Whitmer is going to block long-term tax relief so she can transfer those dollars to wealthy and well-connected big businesses.
James Hohman, director of fiscal policy at the free-market Mackinac Center for Public Policy said the proposal missed the mark.
“Lawmakers should want to encourage job growth by improving the state’s business climate rather than to redistribute income,” Hohman told The Center Square. “And the governor is actively trying to avoid cutting taxes for everyone.”
