Governor signs bill into law to roll back retirement tax and increase tax credits

LANSING, Mich. – Today, Governor Gretchen Whitmer released the following statement after Michigan Legislature passed the Lowering MI Costs plan to deliver a $1 billion tax break to seniors and working families. The plan will roll back the retirement tax to save 500,000 households an average of $1,000 a year and quintuple the Working Families Tax Credit to put an average refund of $3,150 back into the pockets of 700,000 Michiganders.    

“Michiganders need relief as inflation drives up costs and eats into their paychecks. That’s why I worked with the Michigan Legislature to pass the Lowering MI Costs plan to deliver a $1 billion tax break for seniors and working families. 

“The Lowering MI Costs plan will put money back in people’s pockets to help them pay the bills and put food on the table. Rolling back the retirement tax will save half a million households an average of $1,000 a year. Quintupling the Working Families Tax Credit will put an average combined refund of $3,150 back in the pockets of 700,000 families, directly benefiting half the children in Michigan. 

“This is long overdue relief for Michiganders after the rug was ripped out from under them in 2011, when the retirement tax was slapped on and the Working Families Tax Credit was gutted. It was wrong. Now, we are making it right. We’ve been fighting to get this done for over a decade and I am proud to have partners in the legislature committed to delivering real relief.