Gov. Whitmer signs Lowering MI Costs Plan into law
LANSING, Mich. (CBS DETROIT) - Gov. Gretchen Whitmer signed the Lowering MI Costs plan into law Tuesday.
The plan will provide an average combined tax refund of $3,150 to 700,000 Michigan families. House Bill 4001 also quintuples the Michigan Working Families Tax Credit match of the federal Earned Income Tax Credit from 6% to 30%.
"Right now, families are facing the pinch and having tough conversations about how to make ends meet," said Whitmer in a statement. "Today, I am proud to sign a $1 billion tax cut for seniors and working families. Getting this done will help people pay the bills, put food on the table, and afford essentials like groceries and school supplies. It will ensure seniors can keep more of what they've earned over a lifetime of hard work and put money back in the pockets of 700,000 working families. I will continue to work with our legislative partners to build on this progress, grow our economy, and lower costs for every Michigander."
The plan amends the Income Tax Act and phases out the retirement tax over four years, saving 500,000 Michigan households an average of $1,000.
"More than a decade ago, this shameful pension tax broke a promise to retirees and forced those on fixed incomes to change their retirement plans when the rules of the game unexpectedly were rewritten," said AARP Michigan State Director Paula D. Cunningham. "But today, after a 12-year fight and a final push that swamped state legislators with more than 13,300 emails from AARP members, this wrong has been righted, providing relief for half a million current retirees and waves of retirees yet to come. AARP applauds the governor and those legislators who elevated the repeal of this tax as a top priority and voted yes."