Detroit Evening Report: Michigan Legislature approves nearly $1B in tax cuts

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Michigan state capitol building.

Michigan state capitol building.

The Michigan Legislature approved $944 million in tax cut proposals Thursday night that will help lower taxes for one million seniors and low-income workers.

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The Senate voted 27-11 and 23-15 to expand the Earned Income Tax Credit and change how retirement funds are taxed by the state, respectively. Eligible low-income workers will save around $442 million on their tax bills annually, while public pensions will be exempt from being taxed.

The House passed its own retirement tax repeal 67-41, and also easily approved their version of a bill to expand the Earned Income Tax Credit by a 100-8 vote.

The passage of these bills came less than 24 hours after Michigan Gov. Gretchen Whitmer used her State of the State address to target tax relief and combat inflation.

Republicans made the argument that the bills should provide relief to all residents with broader income tax cuts. Democrats contended that the tax was unfair to teachers, police offices, and others who started their careers with the knowledge that their retirement income wouldn’t be taxed.

The next step is for either the House or Senate bills to pass through the opposite chamber, though it’s currently unknown which version of the bills will eventually reach Whitmer’s desk to be signed into law.

Other headlines for Jan. 27, 2023:

  • SW Detroit nonprofit receives $1.3 million grant to help young adults with work experiences
  • Dearborn health department takes steps to make access to services easier for residents
  • Public vigil to be held at Madison Heights City Hall honoring Monterey Park, Half Moon Bay shooting victims
  • Belle Isle Nature Center hosting winter fest this weekend

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  • Hernz Laguerre
    Hernz Laguerre Jr. is a Multimedia Journalist at 101.9 WDET. He is one of the co-host for "Detroit Evening Report," one of the weekend anchors for "Weekend Edition," the producer for our political podcast, "MichMash," and reports on arts, culture and politics.