Rep. Beth Griffin today continued her efforts to provide tax relief for Michigan families, voting in favor of a new plan that could ultimately save taxpayers an estimated $2.5 billion combined each year.
The plan moving through the Legislature, made possible by a surplus of state revenue, would save taxpayers by reducing the individual income tax rate and boosting savings for individuals, families, seniors, and veterans.
“This is an easy decision for me – state government has more money than it expected to have, and we should return as much of that money as possible to taxpayers,” said Griffin, of Mattawan. “Any time we get a chance for people to hang onto more of their own tax money, we must take advantage of it. With inflation going crazy right now, this is an especially important time to stand up for taxpayers and provide some much-needed financial relief.”
Gov. Whitmer vetoed the Legislature’s initial efforts to reduce taxes earlier this year. Highlights of this new effort include:
- Income tax cuts. The Legislature’s plan lowers the individual income tax rate from 4.25 percent to 4 percent and increases the personal income tax exemption by $1,800.
- Per-child tax credits. Families would be eligible for a $500 nonrefundable tax credit for each child 18 years old or younger.
- Additional tax exemptions for seniors. Residents age 67 and older who may currently deduct $20,000 of income individually or $40,000 jointly would be eligible for an increase of $1,800 or $3,600, respectively, with future increases automatically adjusted for inflation.
- Relief for working families. The state Earned Income Tax Credit, which offers savings for lower-income families and individuals, would increase from 6 percent to 20 percent of eligible income.
- Expanded benefits for veterans. Under current state law, a veteran with a permanent and total disability resulting from military service is exempted from paying property tax on their home. The new plan would also apply this exemption to an eligible veteran’s surviving spouse. Veterans with a disability determined to be between 50 percent and 100 percent would be eligible for a property tax credit up to $2,000. The state also would reimburse local governments for the veteran exemptions, preserving local funding for essential services.
The tax relief plan is contained in House Bill 4568 and Senate Bill 784. Votes in the Legislature began today and are expected to conclude soon, sending the bills to Gov. Whitmer for her consideration.
Reps. Beth Griffin and Pauline Wendzel once again championed commonsense election security solutions today in the Michigan Legislature – and this time, it’s part of a long-overdue bipartisan agreement the governor is expected to sign.