LANSING, Mich. — State Sen. Jim Runestad on Thursday voted in favor of legislation to provide Michigan families, seniors and veterans with $2.5 billion in tax relief — a second major legislative effort to return part of the state’s record budget surplus back to taxpayers.
“The basic costs of living keep going up and the state’s budget surplus keeps bulging while the people of Michigan are finding their wallets thinner and budgets tighter as they struggle against record inflation and sky-high energy costs — and those who are on fixed incomes are impacted even more,” said Runestad, R-White Lake. “It is imperative that the Legislature and governor approve a plan to provide real and meaningful tax relief and return a significant portion of the state’s excess dollars to the taxpayers it belongs to and need it most.”
The MI Family Inflation Relief Plan would help every Michigander by lowering the state’s income tax to 4% and increasing the personal income tax deduction by $1,800. It would also support Michigan families by creating a $500 tax credit for each child under the age of 19.
House Bill 4568 and Senate Bill 784 would also increase the tax exemption for Michigan seniors over 67 to $21,800 for individuals and $43,600 for couples and ensure Michigan’s fully disabled veterans and the spouses of those lost in combat receive a 100% property tax exemption.
The bills will mark the third time this year that the Legislature has sent bipartisan tax relief to the governor for her signature. In April, she vetoed House Bill 5570 to temporarily suspend the state’s gasoline and diesel excise tax. In March, she vetoed Senate Bill 768 to reduce the state’s personal income tax, create a $500 per child tax credit, and increase the tax deduction for all seniors.
The MI Family Tax Inflation Plan is a broad-based approach to help all hardworking Michiganders, struggling families, and seniors on fixed incomes,” Runestad said. “I hope the governor will reconsider her past action and this time joins the Legislature in providing vital tax relief to the people of Michigan.”