The state of Michigan could issue inflation relief checks to all tax filers, should a newly announced plan get approved by the state Legislature.
UPDATE: Finalized Michigan inflation relief plan doesn’t include $180 individual relief checks
Under the proposed Lowering MI Costs plan, Michigan taxpayers could each receive $180 from the state this year. Though the amount may not seem like much, officials said Monday that for those working full time and still struggling, the checks would work in conjunction with increased tax credits to provide more significant relief.
Here’s what we know right now.
Who would get a $180 check?
Michigan Gov. Whitmer said Monday, Feb. 6, that all tax filers would receive a $180 inflation relief check under the Lowering MI Costs plan.
It is believed that means married couples who file taxes together would only receive one check, not two. It is also unclear if dependents will pay a role in the amount of money sent to a tax filer, though that does not seem likely.
When would checks be sent?
A date for when checks might be mailed out has not been publicly announced.
The Lowering MI Costs plan must still be passed by the state House and Senate, and signed into law by Gov. Whitmer. If that happens, Whitmer said the checks will be sent out “as soon as possible.”
What’s the Lowering MI Costs plan?
The plan was announced on Friday, Feb. 3, by Democrats Michigan Gov. Gretchen Whitmer, Senate Majority Leader Winnie Brinks and House Speaker Joe Tate. Officials say it’s an attempt to provide immediate financial relief to Michigan residents struggling amid high inflation.
The $180 inflation relief checks are only one component of that plan. Lawmakers are also looking to eliminate the state’s retirement tax, and increase tax credits to help workers and their families.
Gov. Whitmer’s office says the plan will phase out the state’s retirement tax over a four-year period, and “ultimately puts an average of $1,000 back in the pockets of 500,000 households.” The exemption would be equalized on public and private pensions, officials said.
Working families tax credit
Under the plan, the Michigan Working Families Tax Credit match of the federal Earned Income Tax Credit would quintuple, increasing from 6% to 30%.
“It delivers an average combined tax refund of $3,150 to 700,000 families, directly impacting nearly one million kids -- almost half the kids in Michigan,” a press release read Monday. “Lowering MI Costs makes this boost retroactive for tax year 2022, meaning families will get more money in their pockets this year.”
Will the plan take effect?
Because the plan was proposed by Democrats, it is likely to get passed due to the Democratic majority in the state Legislature and executive branch. However, Whitmer, Brinks and Tate all said Monday that they anticipate bipartisan support for this plan.
It is unknown how long it will take for the Legislature to vote on the proposed plan. Lawmakers are scheduled to return to the Legislature on Tuesday.