LANSING, Mich., April 14, 2022 — At a press conference this morning, members of the Michigan House Democratic Caucus gathered to urge the passage of two bills that will deliver tax relief for hardworking Michigan families.
“Our plan is to provide real tax relief to all Michiganders, not half measures that leave our retirees high and dry or so-called tax cuts that benefit the wealthiest Michiganders at the expense of everyone else,” said House Democratic Leader Donna Lasinski (D-Scio Township). “Eliminating the Republican retirement tax and expanding the Earned Income Tax Credit delivers much-needed relief for families while growing our workforce and helping small businesses and main streets across the state.”
In 2011, the new legislative majority enacted a massive tax shift to let corporations pay billions of dollars less annually. To pay for this, taxes were increased on seniors and working families, including the elimination of the exemption of retirement income.
“The retirement tax has left retirees worried about being able to afford their necessities after a lifetime of hard work,” said state Rep. Angela Witwer (Delta Township), sponsor of House Bill 4490, which would eliminate the retirement tax. “Our retirees, who helped build our communities and economy, now face an unexpected and unnecessary burden. They should not have to pay this tax any longer. It’s time to relieve our retirees from the punitive retirement tax and allow them to enjoy the benefits of a lifetime of hard work and sacrifice.”
Another portion of paying for the 2011 corporate tax cut was reducing or eliminating credits and deductions that helped working families keep more of their hard-earned money. Among those was the Earned Income Tax Credit, which is available to workers who report income from a W-2 and has been hailed as one of the most effective anti-poverty measures in history.
“Restoring the Earned Income Tax Credit would lift 22,000 people out of poverty and send 730,000 families an average refund of around $3,000,” said state Rep. Rachel Hood (D-Grand Rapids), sponsor of House Bill 4986, which would restore the Earned Income Tax Credit to the original 20%, 14 percentage points higher than its current 6%. “That’s the kind of relief Michiganders so desperately need. Restoring the EITC is a critical component of our state’s success. It’s time to put partisan politics aside and deliver for hardworking families throughout Michigan.”