© 2023 Michigan State University Board of Trustees
Public Media from Michigan State University
Play Live Radio
Next Up:
0:00 0:00
Available On Air Stations

More details expected this week on Democrats' tax plan

Phillip Hofmeister

More details are expected Monday from Governor Gretchen Whitmer and the Legislature’s Democratic leaders on a package to help taxpayers deal with the rising cost of living.

The state has a surplus and the plan they outlined Friday is expected to include targeted tax rollbacks and rebate checks for residents.

House Speaker Joe Tate (D-Detroit) said the Democratic leadership wants to give Michiganders some relief from the rising cost of living.

“We want to be able to focus on tax relief that will cover all of Michigan residents,” he said. “So that’s our focus and that’s where we want to get to.”

Whitmer said she wants to reduce the income tax on people on pensions have to pay. And she wants to fully restore the state Earned Income Tax Credit to help lower-income families. The credit was rolled back by Republicans in 2011 to help pay for reducing businesses taxes.

“It eviscerated the Earned Income Tax Credit,” Whitmer said. “People work full time but can’t make enough to get ahead. I’m trying to un-do the harm that was done 12 years ago, so that’s job one.”

But Whitmer says she thinks many Republicans will find things to like in this tax package.

“I anticipate and look forward to bipartisan support because this is one of those opportunities that I think everyone in the Legislature is going to want to be part of,” said Whitmer.

Senate Minority Leader Aric Nesbitt (R-Porter Township) said it appears some GOP ideas are incorporated into the plan.

“Senate Republicans are cautiously optimistic that Governor Whitmer may finally be heeding our call for immediate inflation relief for Michiganders,” he said. “But when it comes to lower taxes, her actions have too frequently failed to match her words. Michiganders have too often played Charlie Brown to the governor’s Lucy as she yanks away her promises of tax relief at the last second.”

The package could start moving through the Legislature as soon as this week.

Rick Pluta is Senior Capitol Correspondent for the Michigan Public Radio Network. He has been covering Michigan’s Capitol, government, and politics since 1987. His journalism background includes stints with UPI, The Elizabeth (NJ) Daily Journal, The (Pontiac, MI) Oakland Press, and WJR. He is also a lifelong public radio listener.
Did you know that 40% of Michigan third graders have trouble with reading? Join WKAR in our efforts to increase youth literacy. Every donation of $60 or more provides a reading kit to a child in our community, and funds another year of local journalism. Donate today!