PORTAGE, Mich. (WOOD) — The latest attempt from Republicans in the state Legislature to provide what they call inflation relief in the form of tax reductions is not meeting with any more support from the governor than plans she previously vetoed.
The plan Republicans passed Thursday would provide up to $2.5 billion in relief on a number of fronts, including raising the exemption on the state income tax while lowering the rate of that tax, increasing the earned income tax credit and more, according to Rep. Matt Hall, R-Comstock Township. He said the plan would provide ongoing relief.
“In the House budget, we accounted for a $1 billion tax and then just today, on Friday, we found out about a revenue estimating conference that found out that there’s billions more available than what we knew about, so it makes a lot of sense to cut people’s taxes right now and give them back more of that money since it’s billions of dollars more than what we were projecting,” Hall said. “Now the governor put forward a plan that gives families a $500 check one time. I don’t consider that a serious plan and it’s kind of a gimmick, right?“
Gov. Gretchen Whitmer said that one-time $500 rebate to the Michigan residents can be delivered quickly.
“They need relief right now and that’s why I proposed a $500 tax rebate. We could do that in a matter of days and get that in people’s pockets. What the Legislature did yesterday unfortunately isn’t serious about giving people relief right now because it doesn’t even take effect until next year,” Whitmer said. “So I assume if asked the average Michigander, do they want help today or in 10 months from now, I’m pretty sure they’re going to say today. That’s why the $500 rebate is something that I think we really should find common ground on, work together to make it happen and get it out the door.”
While apparently neither side believes the other is “serious,” both will have to get serious as the deadline for a new state budget is just over 40 days away. While the competing tax cut plans are not necessarily part of the budget, they certainly will be part of the budget negotiation.