Plan reduces income tax for all while providing additional relief to seniors
State Rep. Luke Meerman today announced the House Tax Policy and House Appropriations committees have advanced plans to slash taxes across the board for all Michigan residents and provide financial stability to debt-ridden municipal governments.
“Inflation is skyrocketing and it’s affecting everyone from working families to retired seniors,” said Meerman of Coopersville. “Right now, our state is sitting on more money than it ever has thanks to federal ARPA funds. In our lifetimes, I doubt we will ever see this accumulation of wealth in state coffers ever again. Now is the time to deliver meaningful tax relief to the people of Michigan. We need a permanent income tax reduction that will benefit Michiganders for decades to come.”
Meerman said the House tax plan is better than the governor’s because it cuts taxes for every taxpayer – not just a small percentage of people who have government pensions.
The committees met today during a joint hearing to consider the two bills.
House Bill 5838, approved by the House Tax Policy Committee, provides an estimated $1.7 billion in annual, ongoing tax relief. It starts with rolling back the income tax rate to 3.9 percent – down from the current 4.25 percent – for all individual payers of the Michigan income tax.
Seniors would receive additional relief. The income exempted from taxes for those 62 and older would rise to $20,000 for individual filers and $40,000 for joint filers. An additional exemption would be applied specifically to retirement income – also at $20,000 for single filers and $40,000 for joint filers.
House Bill 5054, approved by the House Appropriations Committee, provides $1.5 billion in one-time funding to reduce debt and improve the finances of public employee retirement systems. Most of the funding would go to pension plans for local governments and road commissions, with an additional $350 million to improve financing in the Michigan State Police retirement system.
HBs 5838 and 5054 now move to the full House for further consideration.
“These firearm reforms violate due process and the personal protection rights of law-abiding citizens. We certainly should not be passing legislation that restricts an individual’s second amendment rights when our broken criminal justice system is not properly enforcing the laws already in place to keep dangerous offenders behind bars.”
Local office hours are an opportunity for residents to meet one-on-one with their state representative, Luke Meerman, to discuss issues affecting the state, ask questions about state government, and request assistance with issues they are experiencing. No appointment is necessary, and all are welcome to attend.
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