In an effort to offset rising inflation, Gov. Whitmer proposed earlier this month that the state use its surplus tax revenues to send working families $500 rebate checks.
“Let’s take advantage of our additional revenue to put money in people’s pockets and deliver real relief right now,” said Gov. Whitmer in an announcement about the bill, which would require legislative approval and negotiations with lawmakers regarding details like cost and eligibility.
According to the Senate Fiscal Agency, Michigan is projected to have a $2.8 and $1.1 billion surplus in tax revenues for 2022 and 2023, respectively, joining many states across the country that are seeing increased tax revenues following a period of federal aid and economic stimulus measures.
The proposal, titled MI Tax Rebate Right Now, will require bipartisan support as Gov. Whitmer contends with a state legislature that may be unreceptive due to her vetoing of a Republican-led tax cut plan back in March.
“The pain being felt by people is tangible,” said Gov. Whitmer, citing a variety of factors, from the war in Ukraine to the pandemic, as reasons for why inflation is reaching unbearable levels for some of Michigan’s working families.
The bill to send rebate checks to help Michiganders is just the latest in a series of actions taken by the governor towards mitigating the effects of rising gas and living costs. In February, Gov. Whitmer proposed dialing back the retirement tax and tripling income tax credits in an effort to refund more money back to families struggling with inflation.
“Michiganders are counting on us to work together to provide real relief right now, so they can pay the bills and put food on the table,” noted Gov. Whitmer.
Reprinted from the Tri-City Record