LANSING — Governor Whitmer, Senate Majority Leader Winnie Brinks and House Speaker Joe Tate showcased the Lowering MI Costs Plan. This plan will deliver the largest tax breaks to Michiganders in decade as it rolls back the retirement tax, promotes the working families tax and distributes inflation relief checks to every taxpayer.
“The number one concern for Michiganders right now is costs,” Whitmer said in a press release. “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.”
“House Democrats heard from Michiganders across our state that they want us to repeal the retirement tax,” Tate said. “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. I am proud of my colleagues in both chambers and the governor for her leadership to get this done.”
“This announcement is a tremendously exciting moment for Michigan,” Brinks said. “It includes key promises that Democrats have been talking about in coffee shops and town halls and at our neighbors’ doors for years. It reflects what we have been hearing from Michiganders and what we have been working to deliver: Lowering costs, combating the pinch of inflation and providing real, immediate relief for the people of our state.”
The plan phases out the retirement tax over four years and ultimately puts an average of $1,000 back in the pockets of 500,000 households. Lowering MI Costs will equalize the exemption on both public and private pensions.
Working Families Tax Credit
The plan quintuples the Michigan Working Families Tax Credit match of the federal Earned Income Tax Credit (EITC) to 30 percent, up from 6 percent. It delivers an average combined tax refund of $3,150 to 700,000 families, directly impacting nearly 1 million children — almost half the children in Michigan. Lowering MI Costs makes this boost retroactive for tax year 2022, meaning families will get more money in their pockets this year.
Inflation Relief Checks
The plan will deliver $180 inflation relief checks to every Michigan tax filer, providing immediate relief by putting money back in pockets. It ensures everyone receives some relief and builds on relief for working families and seniors.
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