Rep. Annette Glenn, R-Midland, today voted in favor of a new plan giving Michiganders much-needed tax relief.
‘The Family Inflation Relief Plan’ advanced by the House of Representatives, made possible by a surplus of state revenue, would save taxpayers money by reducing the individual income tax rate and boosting savings for families, seniors, and veterans.
Overall savings for taxpayers are estimated at roughly $2.5 billion per year.
“People across the state have had a very difficult couple of years navigating the pandemic – and now inflation is making it even tougher to pay bills and make ends meet,” Glenn said. “Tax relief is an absolute necessity, and the state has the resources to provide it. I am hopeful the governor will work with the Legislature and get this done to help Michiganders in a time of need.”
Gov. Whitmer vetoed the Legislature’s initial efforts to reduce taxes earlier this year. Highlights of the new plan moving through the Legislature 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.
Rep. Glenn talks about her HB 4640, which adds “threatened harm” to the definition of “neglect” in Michigan’s Child Abuse and Neglect Prevention Act. The change means anticipated or threatened harm to a child could be taken into account by courts. The legislation has been approved by the House and is pending in the Michigan […]
Rep. Annette Glenn said a budget approved by the Michigan Legislature today will invest in important regional projects, improve schools and make communities safer – all while leaving room for tax relief to help families fight inflation.