Governor Gretchen Whitmer proposed a repeal of the retirement tax in her State of the State address. Rolling back this tax on retirement income, including pensions, 401(k) accounts, and IRAs would save half a million households $1,000 a year.
“Repealing the retirement tax will put Michiganders first and save half a million households $1,000 a year,” said Governor Whitmer. “Michiganders who have worked hard, played by the rules, and budgeted for their whole lives should be able to retire and keep all of their hard-earned dollars. Putting money back in the pockets of retirees will help them afford the essentials from prescriptions, rent, utilities, car payments, to gifts for their grandkids.”
“I worked for 31 years as a Steelworker. In 2004 I retired with a pension to provide for my wife and me. My pension is a lynchpin for our financial security,” Steve Turri, a resident of Negaunee and retired Steelworker. “The law that taxed my pension years later has been unfair to us. I fully support the Governor’s proposal to repeal the pension tax.”
Whitmer proposed increasing Michigan’s Earned Income Tax Credit, or EITC, in her State of the State address. Increasing the EITC, a tax cut for working families, would deliver an average combined tax refund of $3,000 to 730,000 Michiganders, helping them pay the bills and put food on the table.
“Raising the state EITC puts Michiganders first by putting nearly $3,000 back in their pockets when paired with the federal EITC,” said Governor Whitmer. “Michiganders who work full-time but still can’t get ahead deserve to keep more of their hard-earned dollars. As part the MI New Economy plan, I set an ambitious goal of lifting 100,000 working families out of Poverty. Delivering on this tax cut for working families will pull over 22,000 Michiganders out of working poverty and make significant progress towards that goal, while raising incomes for 730,000 workers and benefitting nearly 1 million kids—nearly half the kids in Michigan. This refund for working families is a game-changer for so many Michiganders, and I know we can work together to get this done.”
“The Michigan Catholic Conference has long been a supporter of expanding the Earned Income Tax Credit in Michigan and was instrumental in its original creation. The EITC does more to lift people out of poverty, while encouraging the dignity of work, than any other policy in state government,” said Paul Long, President and CEO of the Michigan Catholic Conference. “We are eager to work with the Governor and those in the Legislature who have been working to advance the expansion of the EITC for many years.”
Michiganders who work hard every day to provide for their families deserve a break and a bigger tax refund. Governor Whitmer wants to restore the Michigan EITC to its original amount and deliver an average tax refund of nearly $3,000 to over 730,000 working people.
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