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Democrats Propose New Tax Cuts with The ‘Lower MI Costs’ Plan

by Sophia Murphy
February 7, 2023
A A

LANSING, MICH. (WZMQ) – This tax season, Governor Gretchen Whitmer and the democratic legislators are proposing a new tax plan with the goal of relieving some of the pressures of inflation. The proposed “Lowering MI Costs” plan would affect three different tax credits this year.

The Working Families Tax Credit would increase from 6% up to 30%, this tax credit would apply retroactively to the 2022 tax year with the goal of putting an average of $3,150 back into the pockets of 700,000 Michiganders.

The ‘Lower MO Costs’ plan would also repeal Michigan’s retirement tax over a four year period. It’s estimated the repeal would save half a million households an average of $1,000 each year.

State Representative Jenn Hill of the 109th district says folks should see an immediate benefit in their 2023 taxes, “The pension relief is obviously for folks who are retired, and we have many of those folks, and there are many more in the up, so we’re really excited at the benefit that’s going to come to the residents here in the upper peninsula”

As a part of the plan, Governor Whitmer has announced an inflation relief check that would give $180 to every tax filer in Michigan. Representative Hill said, “We wanted to make sure, with recognizing how much influence the increase in inflation has had in the past 12 months, we wanted to jump right in and get people money  back in their pockets right away here at the beginning of 2023.”

Hill says The Lower MI Costs plan would pull money from corporate income tax and reinvest it back into households. The plan still has to pass through the house and the senate, Governor Whitmer says she expects bipartisan support of the plan as it makes its way through the legislature.

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