LANSING, Mich. (AP) — Democratic Gov. Gretchen Whitmer and the Republican-led Michigan Legislature proposed new tax cut plans Thursday, but remained at odds over the scope and immediacy of any relief.
Whitmer called for a one-time $500 refund for “working families,” adding to his earlier proposals to phase out a retirement income tax and fully restore a low-wage credit. GOP lawmakers planned to quickly pass legislation that would permanently cut state income tax, increase the personal exemption, create a child tax credit, fully restore the break for working people to low income and extend a property tax credit to include partially disabled veterans.
Whitmer vetoed a similar $2.5 billion plan two months agoclaiming that it would reduce funding too much.
Thursday’s steps came a day before the Whitmer administration and legislative economists are expected to revise upward tax revenue estimates in Michigan’s two major multi-billion dollar accounts for this fiscal year and next. The pandemic-related budget surpluses are even larger today than expected in January.
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“Let’s use our extra revenue to put money in people’s pockets and provide real relief to taxpayers now,” the governor wrote in a letter to legislative leaders, citing high inflation. Details on refund eligibility have not been released, nor has the price.
Gideon D’Assandro, spokesman for House Speaker Jason Wentworth, said his proposed $500 discount “isn’t good enough for families struggling to afford groceries or food.” gasoline with rising inflation. … With billions of dollars in excess revenue, the state government can do better than that. Republicans are going to make working families a priority and deliver real savings.
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