Gov. Gretchen Whitmer pitched lawmakers her plan to send $500 checks to “working families.” The money would derive from the budget surplus amid record 40-year inflation and the statewide average gas prices breaking $4.50 per gallon.
The Senate Fiscal Agency estimated Michigan’s budget surplus at $2.8 billion this current fiscal year and $1.1 billion next fiscal year.
“Let’s take advantage of our additional revenue to put money in people’s pockets and deliver real relief right now to taxpayers,” Whitmer said in the letter.
However, the GOP-dominated Legislature is preparing to vote on broad tax relief today, MIRS first reported.
The two parties have disagreed on how to spend the surplus.
Whitmer wants to repeal the retirement tax, triple the earned income tax credit, and subsidize electric vehicles.
The House and Senate will vote Thursday on a $2.5 billion tax relief plan that aims to drop the income tax from 4.25% to 4.0%, boost the earned income tax credit, and add a new $500 per child tax credit.
Small Business Association of Michigan President & CEO Brian Calley welcomed the planned tax cuts.
“While small businesses and workers across the state are struggling with rising costs, our state government is awash with cash,” Calley said in a statement. “It is past time to provide permanent tax relief. SBAM is very supportive of this sensible legislative plan to lower the individual tax rate, which is the main tax small business owners pay, while also expanding the Earned Income Tax Credit to better support Michigan workers and their families.”
Whitmer has vetoed GOP plans that aimed to provide $2.5 billion in tax relief and bills to cut the gas tax temporarily.
“Providing broad, permanent tax relief for Michiganders and small businesses is the fair and equitable thing to do and we hope to see these plans become law in the near future,” Calley said.
This article was originally posted on Whitmer pitches $500 checks as Legislature eyes billions in tax cuts