Michigan taxpayers could soon get some money in the form of inflation relief checks. Governor Gretchen Whitmer, on Monday, unveiled a new plan that among other things, also calls for sending $180 inflation relief checks from Michigan.<\/p>\n
On Monday, at a press conference, Governor Whitmer revealed details of her \u201cLowering MI Costs\u201d proposal, which includes sending $180 inflation relief checks from Michigan. The money for the checks will come from the state\u2019s general fund.<\/p>\n
These inflation relief checks from Michigan would be sent for each income tax filing. So, a couple filing jointly would receive just one check. Moreover, those who are eligible to file income tax returns but don\u2019t owe any taxes would also be eligible for the inflation check.<\/p>\n
If the proposal is approved, the state will issue the checks as soon as this spring or early summer.<\/p>\n
The plan to send inflation relief checks from Michigan is part of the bigger plan from state House and Senate Democrats that also includes repealing the retirement tax, as well as boosting the earned income tax credit.<\/p>\n
Repealing the retirement tax would result in a savings of $1,000 annually for seniors, while boosting the earned income tax credit would lead to $3,150 in tax returns to about 700,000 families.<\/p>\n
\u201cThis will be the largest tax breaks for working families and seniors in Michigan in decades,\u201d Gov. Whitmer said at the press conference.<\/p>\n
Although the plan enjoys the backing of state House and Senate Democrats, it still needs to pass both chambers of the legislature before it becomes law. Republicans, on the other hand, want the state income tax to be reduced from 4.25% to 4.05%.<\/p>\n
Criticizing Whitmer\u2019s plan, Senate GOP leader Aric Nesbit argues that the one-time rebate won\u2019t be sufficient as it amounts to just $0.49 a day. Whitmer, on the other hand, argues that her plan is better than the GOP\u2019s proposal that seeks to offer $16 over 52 weeks for some low-income citizens.<\/p>\n
“That’s $0.30 cents a week. That’s not meaningful relief,” said Gov. Whitmer, adding that the $180 inflation relief checks would help those who need it the most.<\/p>\n
Reducing the tax rate is estimated to cost the state about $600 million, and this, Democrats believe, could hurt the state when the surplus is over.<\/p>\n
\u201cInflation has driven the cost up on everyday goods, which is squeezing household budgets and forcing families to forego necessities,\u201d Gov. Whitmer, Senate Majority Leader Winnie Brinks of Grand Rapids and House Speaker Joe Tate of Detroit said in a joint statement. \u201cThat\u2019s why they sent us to Lansing to lower costs and put more money back into people\u2019s pockets. We heard Michiganders loud and clear.\u201d<\/p>\n
This article originally appeared on ValueWalk<\/i><\/p>\n
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