Michigan Inflation Relief: Democrat’s Rebate Checks Vs. Republican’s Tax Cuts

The Democrats plan to issue up to $180 in rebate checks, while the Republicans created provisions that require Michigan to cut income tax rates. In this article, read and find out which inflation relief plan is better for the state of Michigan.

The Democratic Governor of Michigan, Gretchen Whitmer, and the Republican lawmakers are once again in disagreement over the laws about inflation relief for the state. Reportedly, Whitmer has vetoed two Republican tax proposals in 2022. Now, the Democrats have control over the House and the Senate, but despite these two major seats, passing bills still remains a challenge.

According to Oosting, the Senate was expected to take final votes last February 14. The legislation included the rebate checks to be issued to all tax filers for inflation relief, expansion of the Earned Income Tax Credit for workers with low incomes, and the abolition of the retirement tax on pension incomes.

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Better Inflation Relief Plan

According to McClallen, the Democrats plan to issue $180 worth of rebate checks to every individual filer or $90 to each married filer in Michigan. With this inflation relief plan, the state will shell out around $800 million from what remained of the $9 billion budget surplus. Whitmer claims that this plan is the largest tax break for workers and seniors in Michigan in decades.

Unfortunately, Republicans argue that this plan would only block a permanent tax relief. The Republicans also intend to return money to the taxpayers. However, they believe that Whitmer’s plan would block the inflation relief they prefer. In 2015, the Republicans increased the fuel taxes to fund for road repairs. The Republican lawmakers included a provision to require Michigan to cut the income tax rates whenever the revenue growth surpasses the inflation rate.

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