Michigan Democrats unveil bill to repeal retirement tax

LANSING, Mich.Democrats in Lansing introduce the first bills of the legislative session, and they involve your money. The bills would boost a tax credit and repeal other impacting retirees.

But it could be an uphill battle with Republicans set to introduce their own plans to tackle inflation.

Governor Gretchen Whitmer’s administration announced a repeal to the retirement tax and another bill that will boost tax credits for Michigan families.

“By boosting the working families tax credit here in Michigan, we will deliver on average at least $3,000 to 700,000 households in Michigan, lifting tens of thousands of them out of working poverty,” said Lt. Governor Garlin Gilchrist.

Lawmakers hope that will help Michiganders offset some of the rising inflation costs. They’re also aiming to help seniors who, in 2011, were hit unexpectedly with a retirement tax.

“It was wrong then, and today, we’re in a position to make it right,” said Whitmer. “Rolling back the retirement tax saves half a million households a thousand dollars a year.”

Republicans have their own plans.

GOP lawmakers are reportedly planning to introduce their own bill to address the retirement tax and earned income tax credit.

Whitmer says she is ready to sign the legislation, but first, it has to pass, and Democrats don’t have a lot of wiggle room with a slim 56-54 majority in both the House and the Senate.