Legislature’s plan returns more than $2.5 billion to people who need it most
State Rep. Graham Filler today voted to provide much-needed tax relief for families, seniors, workers and veterans in Michigan.
Filler, of Clinton County, said the more than $2.5 billion tax cut plan – made possible by an unprecedented state revenue surplus, partially the result of inflation – will put more money in people’s wallets at a time when everyone is struggling under the weight of historic inflation rates.
“People are struggling because of inflation while the state is experiencing a historic revenue surplus that is partially attributed to inflation,” Filler said. “State coffers should not benefit from the people’s misery. This funding should be returned to the people. Our plan delivers relief for families, seniors and workers throughout our state at a time when they could really use it.”
Highlights of the plan include:
- Income tax cuts for Michigan workers. The Legislature’s plan lowers the individual income tax rate from 4.25% to 4% and increases the personal income tax exemption by $1,800 for single filers and $3,600 for joint filers.
- Relief for working families. Families would be eligible for a new $500 nonrefundable tax credit for each dependent 18 years old or younger. The state Earned Income Tax Credit, which offers savings for lower-income families and individuals, would increase from 6% to 20% of eligible income — a change the governor has previously supported. Restoring the state Earned Income Tax Credit to 20% of eligible income will deliver an average state and federal refund of nearly $3,000 to more than 730,000 working people.
- Additional tax exemptions for seniors. Residents age 67 and older who may currently deduct $20,000 of income individually or $40,000 jointly would be eligible for an increase of $1,800 or $3,600, respectively, with future increases automatically adjusted for inflation.
- Expanded benefits for veterans. Under current state law, a veteran with a permanent and total disability resulting from military service is exempted from paying property tax on their home. The plan would also apply this exemption to an eligible veteran’s surviving spouse and a spouse of a veteran killed in action. Veterans with a disability determined to be between 50% and 100% would be eligible for a property tax credit up to $2,000. Finally, the state will reimburse local governments for the veteran exemptions, preserving local funding for essential services.
The bulk of the tax plan, contained in House Bill 4568, was approved by the state House and Senate today and now advances to the governor for consideration. The remainder of the plan in Senate Bill 784 was approved by the Senate and is expected to pass the House early next week.
Twice this year, the Legislature has sent tax relief proposals to the governor only to see them vetoed. Filler urged the governor to sign the plan and provide much-needed relief to residents.
State Rep. Graham Filler this week voted to eliminate a requirement recently put in place by the unelected Natural Resources Commission (NRC) that, if allowed to stand, could result in criminal penalties for deer hunters who fail to comply.
State Rep. Graham Filler (R-Clinton County) and Senate Minority Leader Jim Ananich (D-Flint), with support from Michigan business owners and representatives from the Michigan Chamber, Small Business Association of Michigan and the Southwest Michigan Chamber of Commerce, today called upon state legislators to support House Bill 4902 and Senate Bill 117, also known as the Buy Michigan plan.