Gov. Whitmer Wants to Send $180 Inflation Relief Checks From Michigan

Michigan taxpayers could soon get some money in the form of inflation relief checks. Governor Gretchen Whitmer, on Monday, unveiled a new plan that among other things, also calls for sending $180 inflation relief checks from Michigan.

$180 Inflation Relief Checks From Michigan: Who Would Get Them?

On Monday, at a press conference, Governor Whitmer revealed details of her “Lowering MI Costs” proposal, which includes sending $180 inflation relief checks from Michigan. The money for the checks will come from the state’s general fund.

These inflation relief checks from Michigan would be sent for each income tax filing. So, a couple filing jointly would receive just one check. Moreover, those who are eligible to file income tax returns but don’t owe any taxes would also be eligible for the inflation check.

If the proposal is approved, the state will issue the checks as soon as this spring or early summer.

The plan to send inflation relief checks from Michigan is part of the bigger plan from state House and Senate Democrats that also includes repealing the retirement tax, as well as boosting the earned income tax credit.

Repealing the retirement tax would result in a savings of $1,000 annually for seniors, while boosting the earned income tax credit would lead to $3,150 in tax returns to about 700,000 families.

“This will be the largest tax breaks for working families and seniors in Michigan in decades,” Gov. Whitmer said at the press conference.

Will Whitmer’s Plan Win Approval?

Although the plan enjoys the backing of state House and Senate Democrats, it still needs to pass both chambers of the legislature before it becomes law. Republicans, on the other hand, want the state income tax to be reduced from 4.25% to 4.05%.

Criticizing Whitmer’s plan, Senate GOP leader Aric Nesbit argues that the one-time rebate won’t be sufficient as it amounts to just $0.49 a day. Whitmer, on the other hand, argues that her plan is better than the GOP’s proposal that seeks to offer $16 over 52 weeks for some low-income citizens.

“That’s $0.30 cents a week. That’s not meaningful relief,” said Gov. Whitmer, adding that the $180 inflation relief checks would help those who need it the most.

Reducing the tax rate is estimated to cost the state about $600 million, and this, Democrats believe, could hurt the state when the surplus is over.

“Inflation has driven the cost up on everyday goods, which is squeezing household budgets and forcing families to forego necessities,” Gov. Whitmer, Senate Majority Leader Winnie Brinks of Grand Rapids and House Speaker Joe Tate of Detroit said in a joint statement. “That’s why they sent us to Lansing to lower costs and put more money back into people’s pockets. We heard Michiganders loud and clear.”

This article originally appeared on ValueWalk

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