LANSING, Mich. — Gov. Gretchen Whitmer and Lt. Gov. Garlin Gilchrist II outlined plans that would reduce costs for Michiganders during a press event Thursday afternoon in the new Heritage Hall building. With the bills that were introduced on Wednesday, Whitmer's mission is to put more money into people's pockets, she said.
“I’m excited to come together with my partners in the Michigan Legislature to announce these bills that will deliver tax fairness for seniors and working families as we all face high costs brought on by inflation,” Gov. Whitmer said. “Right now, families are facing the pinch and every dollar saved will make a difference, especially for our seniors and working families. Rolling back the retirement tax and boosting the Working Families Tax Credit will offer real, immediate relief to Michiganders. We will get these tax changes to put money back in people’s pockets done in the weeks ahead.”
House Speaker Joe Tate and Senate Majority Leader Winnie Brinks were in attendance, along with others democrats.
Whitmer emphasized that the Working Families Tax Credit will put an average of a $3,000 refund into the hands of 700,000 households, which is half the kids in the state.
However, the big question that many asked was about repealing the Retirement Tax, which so far only includes pensions and not 401Ks. Many asked will it be expanded to include all retirement plans. The governor responded with "this is a process."
"The first moment of the process has begun. The legislature introduced the bills. We are all focused on making sure that we help people who are struggling right now," Whitmer said. "And my goal has always been from 2011 when I fought the former administration and all the republicans who were leading in the legislature at the time was repeal that act."
The governor gave no timeline on when the bills would be signed. However, she mentioned meeting with republican leaders Thursday, laying the groundwork for what's ahead.
"It’s not just about helping seniors. It’s not just about helping young families. It’s about helping all of the members of our communities throughout our state," Senate Majority Leader Winnie Brinks during an interview after the presser. "And so we’re going to keep working on this. This is our first set of bills but our priorities are many."
Watch the news conference here:
Michigan League for Public Policy President & CEO Monique Stanton applauded the announcement, saying the plan to boost the tax credit "is a win-win" for the state of Michigan.
“Here at the League, we’ve championed the state Earned Income Tax Credit for more than two decades. We worked on the Michigan EITC’s creation in 2006, and we have been laser focused on restoring and expanding the state credit since it was drastically cut in 2011.
“The Michigan EITC is a transformative investment that reaches communities and districts all over the state, benefits rural and urban residents, and supports families—it helps nearly 750,000 households make ends meet. And it has a ripple effect because families use that credit to pay for groceries, car repairs, school supplies, child care and more—putting that money into small businesses and into our local communities. We also know that kids whose parents receive the credit are healthier, do better in school, and eventually earn more as adults.
“Boosting the EITC truly is a win-win for our state, which is why policymakers, advocates, businesses and families from all walks of life and political backgrounds are pushing for this boost. Gov. Gretchen Whitmer has long championed expansion, and we applaud her and the new legislative leadership for making the EITC a priority for 2023. Both Republican and Democratic lawmakers announcing bills for expansion on their first day of session really is a testament to the bipartisan support that the EITC has had since it began. We hope House and Senate members know the power the EITC has for the people in their districts and will seize this opportunity to boost it to 30% of the federal credit.”
Senate Republican Leader Aric Nesbitt (R–Porter Township) released a statement Thursday saying all residents are in need of tax relief.
“It is important that any serious tax relief legislation works to provide that relief to all Michiganders and not just pick winners and losers. All Michiganders need tax relief — relief from high inflation, high grocery prices, high gas prices and energy costs, and just making ends meet. They need that relief immediately — now — not given as crumbs scattered out over years and years.
“Senate Republicans are ready to work with our legislative partners and return taxpayer dollars to all — and not just some — of the hard-working families, seniors and retirees of this state.
“I am a firm believer that people spend their own money far more effectively than the government. Leaving more resources to families and small businesses, expanding freedom, and encouraging hard work and investment are the building blocks of a healthy economy and brighter future for all Michiganders.”
