The Michigan House is expected to vote on House Bill 4001 Thursday morning, which, if approved, sends $180 checks which Governor Gretchen Whitmer refers to as “Inflation relief,” to everybody who files a tax return.
Filing jointly with a spouse would mean a single check for that couple.
If it passes, it kills the automatic income tax reduction from 4.25% to 4.05% which is what the GOP prefers. The $180 checks would be a one-time thing.
Without further meddling, the income tax rollback in Lansing would be permanent.
Read: Michigan may issue inflation relief checks to tax filers: What to know
That bill also wants to change how retirees are taxed structurally. Currently, Michigan has a three-tier system based on age. The bill calls for phasing that out by 2026, giving all seniors the maximum deduction, and erasing the income tax on public employee pensions.
In addition, It boosts the Earned Income Tax Credit from six percent to 30% which helps low to moderate earners.