LANSING, Mich. — Legislative Republicans on Thursday approved $2.5 billion in relief for Michigan residents, providing help for individuals, families, seniors and military veterans struggling to afford the economy under Gov. Gretchen Whitmer.
“Government is the only winner when inflation and gas prices are at record highs,” said Senate Majority Leader Mike Shirkey, R-Clarklake. “The increasing costs of everyday necessities affects all of us, stretching family budgets thinner and thinner — especially for the working class and those less fortunate — while state government revenues soar higher and higher. These are the unfortunate, if not predictable and avoidable, consequences of the economic policies that have been pushed by President Biden and Gov. Whitmer over the past two years.
“It isn’t the Legislature’s money or the governor’s money to spend; it’s the people’s money and they deserve to keep more of what they earn so they can better provide for their families. I hope this time the governor agrees to prioritize the people of Michigan and resist the urge to spend it on growing state government.”
Under the Republican MI Family Inflation Relief plan, a typical family of four would see approximately $1,300 in combined savings annually. The plan includes:
- A $500 per child tax credit for those under 19.
- Increasing the personal income tax deduction by $1,800.
- Raising the personal exemption for seniors 67 and older to $21,800 for individuals and $43,600 for couples and tying subsequent increases to the rate of inflation.
- Lowering the state income tax to 4%.
- Restoring the Earned Income Tax Credit to 20%.
- Ensuring 100% disabled military veterans and the spouses of those killed in action receive a 100% property tax exemption and setting a $2,000 cap for veterans more than 50% disabled but less than 100% disabled, while holding local governments harmless.
“State government is sitting on billions of dollars in extra revenue, while hard-working families are struggling to pay their bills and buy groceries. That shouldn’t happen,” said Speaker of the House Jason Wentworth. “Our family relief plan will finally let everyone keep more of their own paychecks and get ahead of rising inflation and the pain at the pump. This is the plan Michigan families need to make ends meet.”
Speaker Wentworth also noted the expanded property tax relief for disabled veterans and their families. After serving in the Army, Wentworth worked as a regional coordinator the Michigan Veterans Affairs Agency and ran for office in large part to help improve benefits and services for local veterans.
“This is a real, meaningful gesture to our nation’s veterans and shows how committed we are in Michigan to welcoming them home. We are expanding this great program to tens of thousands of new veterans and their families.”
House Bill 4568 now goes to the governor for consideration, while Senate Bill 784 will be taken up by the House of Representatives after the five day rule next week.