Whitmer Meets with Seniors to Advocate $500M Tax CutGovernor Whitmer’s proposal reinstates tax credits that save about 500,000 Michiganders $1,000 a year, a cash infusion that retirees said would “go a long way.”
By Main Street Sentinel Staff
At roundtables in Detroit and Sterling Heights this month, Gov. Gretchen Whitmer spoke with Michigan seniors, including retired firefighters, police, and teachers, about her proposal to reinstate tax credits that would save half a million Michiganders $1,000 per year.
The proposal gradually eliminates taxes on public pensions, beginning with a 25 percent reduction that would increase annually until it becomes a 100 percent reduction, ultimately saving people $500 million dollars. It would also reinstate deductions for private retirement income. The proposal is part of a 2022-23 state budget that makes use of Michigan’s existing $7 billion in surplus revenue.
MLive reports that retirees at the roundtable said the extra cash “would go a long way” in helping with basic living expenses, including medication costs.
The current taxes on retirement income, which seniors at the roundtables said were “driving friends out of Michigan and making life more difficult,” were introduced a decade ago by Michigan’s previous governor, Republican Rick Snyder.
Repealing Snyder’s tax change lightens the load of seniors, and will ultimately benefit the state’s economy, according to Gov. Whitmer. The proposal is about “addressing the wrong that was done 10 years ago,” and “is really the best investment we can make,” she said.