Lawmakers finalized the Michigan inflation relief plan which was first introduced by Democrats in early February but some components of the initial plan did not survive in the Legislature.
Michigan Inflation Relief Plan Has been Finalized By Lawmakers But The $180 Individual Relief Checks Is Not Included (PHOTO: Audacy)
Michigan Inflation Relief Plan
Michigan Gov. Gretchen Whitmer is poised to sign off on the Lowering MI Costs Plan, which stops the state’s retirement tax over a few years and increases tax credits for lower-income households. February 6, 2023, was announced by Whitmer said that the plan would include a $180 inflation relief check to all tax filers but that’s no longer the case.
Democratic lawmakers in the state House and Senate previously said they expected significant support for this plan from their Republican counterparts. The bill must be a supermajority to pass, but to get Republican lawmakers on board in a limited time frame, the plan was amended to exclude the relief checks.
Tax filers will not be accepting $180 inflation relief checks under the new Michigan inflation relief plan. Though the originally planned $180 checks to tax filers seemed lacking to some, Democratic leaders said those checks would help provide some immediate relief in addition to other relief-inducing measures included in the plan. Republican lawmakers indicated opposition to that part of the plan, arguing that reducing tax rates would offer a more permanent solution to help provide relief than the checks would.
To Elemintae The $180 Individual Relief Checks For Retirement Tax
Issuing the $180 checks would have killed the opportunity to roll back Michigan’s income tax rate from 4.25% to 4.05% so, instead, the checks were cut. Senate Minority Leader Aric Nesbitt said that the Senate Republicans protected the automatic income tax rollback that is due to millions of Michigan residents who need permanently lowered taxes, not a one-time gimmick that disappears in one trip to the grocery store. Still, the new plan intends to provide relief to a wide range of Michigan residents. The Lowering MI Costs Plan is set to phase out the state’s retirement tax over four years.
The Michigan Families whose working Tax Credit matches the federal Earned Income Tax Credit will be expanded from 6% to 30% under the new Michigan inflation relief plan. Lawmakers express that about 700,000 Michigan residents will obtain an average of $3,150 with this tax credit. This modification takes retroactive effect, meaning taxpayers can utilize the benefits during the 2023 tax season.
