Legislature’s plan returns more than $2.5 billion to people who need it most
State Rep. Andrew Fink helped approve a plan today that would provide much-needed tax relief for families, seniors, workers and veterans in Michigan.
Fink, R-Adams Township, said the more than $2.5 billion tax cut plan – made possible by an unprecedented state revenue surplus – will allow people to keep more of their own money at a time of historic inflation rates.
“As a parent, I can sympathize with the growing costs families are facing at the gas pump and the grocery checkout,” Fink said. “With state revenue at a historic high, there’s never been a better time to offer tax relief. It’s time to deliver real solutions to families and seniors by allowing them to keep more of their own money.”
Highlights of the plan include:
- Income tax cuts for Michigan workers. The Legislature’s plan lowers the individual income tax rate from 4.25% to 4% and increases the personal income tax exemption by $1,800 for single filers and $3,600 for joint filers.
- Relief for working families. Families would be eligible for a new $500 nonrefundable tax credit for each dependent 18 years old or younger. The state Earned Income Tax Credit, which offers savings for lower-income families and individuals, would increase from 6% to 20% of eligible income — a change the governor has previously supported. Restoring the state Earned Income Tax Credit to 20% of eligible income will deliver an average state and federal refund of nearly $3,000 to more than 730,000 working people.
- Additional tax exemptions for seniors. Under the plan approved today, 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.
- 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 plan would extend that exemption to an eligible veteran’s surviving spouse and the spouse of a veteran killed in action. Veterans with a disability determined to be between 50% and 100% would be eligible for a property tax credit up to $2,000. The state will reimburse local governments for these exemptions, preserving local funding for essential services.
The bulk of the tax plan, contained in House Bill 4568, was approved by the state House and Senate today and now advances to the governor for consideration. The remainder of the plan in Senate Bill 784 was approved by the Senate and is expected to pass the House early next week.
Twice this year, the Legislature has sent tax relief proposals to the governor only to see them vetoed. Fink urged the governor to sign the plan providing much-needed relief to residents.
State Rep. Andrew Fink (R-Adams Township) demanded stronger accountability measures for the Michigan Independent Citizens Redistricting Commission (MICRC). The representative criticized the Commission because of its recent controversy surrounding ethics violations, as well as the fundamental lack of accountability measures built into the Commission itself. The MICRC is composed of 13 commissioners appointed by the […]
“This budget plan will lead to lasting consequences in future years when we won’t have surplus dollars in the billions,” Fink said. “What’s worse is that this irresponsible plan doesn’t even include appropriations to fulfill the basic needs of communities like ours. Given the governor’s supposed commitment to roads, I was hopeful her friends in the legislature would prioritize local road and bridge improvements, but that’s not the case.”
“Sen. Lindsey is a Yale graduate and decorated soldier who chose to return to Michigan rather than pursuing a career anywhere else in the world, as he certainly could have,” Fink said. “Further, as a representative for the people of several of Michigan’s border communities, he knows better than anyone the toll that bad policies take on our population as our young people leave for neighboring states.”
“This setup would guarantee that our presidential elections will be decided by the most populated areas in the nation – like New York City and L.A.,” Fink said. “The Electoral College has ensured that every state has a stake in deciding our elections for 230 years. Presidential candidates should care about the interests of every one of America’s diverse populations, from rural farm communities to metropolitan areas of all sizes.”