(The Center Square) – Less than one week after promising to lower costs and provide “immediate” relief for Michiganders, Gov. Gretchen Whitmer is pondering a loophole to avoid giving all Michiganders a tax break as required by a 2015 law.
As part of a road funding deal in that year, Michigan Republicans passed a law that Michigan’s 4.25% percent income tax rate would decrease to 4.05% if the state’s general fund grows faster than the rate of inflation in any year starting in 2023.
Mlive reported, citing anonymous sources, that Whitmer’s office wants to tie a policy dodging the drop in state income tax to a tax credit expansion for businesses.
Mlive said the proposal suggested moving $800 million to the state’s Strategic Outreach and Attraction Reserve fund this budget year.
The report stands in stark contract to Whitmer’s Wednesday address. She said:
“We might not be able to solve inflation or supply chain issues on our own, but we must work together to lower costs and put Michiganders on the path to a brighter future,” Whitmer said. “As I said in my inaugural address, Michiganders compete with an underdog spirit and carry ourselves with championship swagger. No challenge is too tough.”
Whitmer’s office hasn’t responded to a request for comment.
Republican State Leadership Committee Deputy Communications Director Mason Di Palma criticized the proposed plan.
“It should come as no surprise that Michigan Democrats are trying to deny their constituents tax cuts as one of their first orders of business after last fall’s election,” Di Palma said in a statement. “As inflation continues to soar, Democrats are proving to Michiganders that their priority is blocking tax relief while Michigan families continue to feel the squeeze at the gas pump and the grocery store.”
Rep. Sarah Lightner, R-Springport, criticized the governor’s attempt to block an automatic income tax cut set to take effect this year that is expected to return roughly $700 million to Michigan families.
“The governor promised to deliver relief to Michigan families, seniors, and working people,” Lightner said in a statement. “Now she’s backpedaling on that promise so she can give away their hard-earned dollars to corporate welfare projects that benefit a select few.”
