LANSING, Mich. — Democratic leaders in Lansing met with Governor Gretchen Whitmer on Friday to hammer out a plan to deliver a tax break to Michiganders.
Gov. Whitmer, Senate Majority Leader Winnie Brinks and Speaker Joe Tate announced that they are in agreement on the framework to a plan they are calling the Lowering MI Costs plan.
The plan includes three major points that are designed to save Michigan residents money and is being touted as "the largest tax break in decades" by Democrats at the state capitol.
The plan includes the repealing of the retirement tax, an increase of the Working Families Tax Credit and issuing inflation relief checks to all Michigan taxpayers.
Democrat leaders estimate that repealing the retirement tax would save 500,000 households an average of $1,000 a year. The increase in the Working Families Tax Credit is estimated to put an average of $3,150 back into the pockets of 700,000 Michiganders.
The democrats did not reveal their plan for the amount or timeframe in which they would issue the inflation relief checks.
The Senate Democrats released the following statement about the Lowering MI Costs plan:
“Michiganders sent a clear message in November. They want leaders who are going to get things done that help their families get ahead.
Right now, inflation has driven the cost up on everyday goods, which is squeezing household budgets and forcing families to forego necessities. That’s why they sent us to Lansing to lower costs and put more money back into people’s pockets.
We heard Michiganders loud and clear.
Today, we are excited to share details on the Lowering MI Costs plan, which is a bold relief plan that delivers the largest tax cut in decades to all taxpayers in Michigan. Under the Lowering MI Costs plan, we will end the retirement tax to save retirees $1,000 per year on average, immediately cut taxes for families making the least to put $3,150 back in their pockets each year, and send inflation relief checks to help every taxpayer in Michigan.
It’s time to get this done because Michiganders deserve it, and with bipartisan support Michiganders will see more money in their bank accounts this year."
The plan has not yet been finalized or or officially proposed as legislation. You can find an early draft of the plan here.
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