Legislature’s plan returns more than $2.5 billion to people who need it most
State Rep. Phil Green helped approve a plan today that would provide much-needed tax relief for families, seniors, workers and veterans in Michigan.
Green, R-Millington, said the more than $2.5 billion tax cut plan – made possible by an unprecedented state revenue surplus – will allow people to keep more of their own money at a time of historic inflation rates.
“Providing lasting tax relief to Michigan’s families and seniors has been a priority of mine since taking office,” Green said. “With state revenue at a historic high and inflation on the rise, now is the time for those goals to become reality.”
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. Under the plan approved today, 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 extend that exemption to an eligible veteran’s surviving spouse and the 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. The state will reimburse local governments for these 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. Green urged the governor to sign the plan providing much-needed relief to residents.
Legislator leads conversation in budget hearing on critical issues State Rep. Phil Green on Wednesday led discussions on key areas impacting the state and families across our communities – child welfare and substance abuse prevention – within a budget plan for the upcoming fiscal year. Green joined other House Appropriations Department of Health and Human […]
State Rep. Phil Green has joined several other Michigan House legislators in sending a letter of support to Texas Gov. Greg Abbott as the state deals with substantial federal overreach. The U.S. Department of Justice has recently sued the state of Texas over efforts to protect its sovereignty, security and citizens. “As state legislators, we […]
Following new, partisan energy laws signed by the governor this week, State Rep. Phil Green reiterated the importance of his recently proposed legislation that ensures Michigan is acting responsibly and ethically. Green’s bill, House Bill 5322, specifically forbids state funds from being used to purchase or subsidize any project that utilizes forced or child labor. […]