Legislative leaders agree to largest tax break in decades

LANSING, Mich. (WPBN/WGTU) -- Michiganders could see financial relief after lawmakers agree to a framework for the Lowering MI Costs plan.

The plan is expected to deliver the largest tax break in decades.

Governor Gretchen Whitmer, Senate Majority Leader Winnie Brinks, and Speaker Joe Tate released details Friday.

The Lowering MI Cost plan would deliver inflation relief checks to all Michigan taxpayers. It would also repeal the retirement tax, and increase the Working Families Tax Credit.

Senate Republican Leader Aric Nesbitt released the following statement Friday in response to the Lowering MI Costs plan:

“Senate Republicans are cautiously optimistic that Gov. Whitmer may finally be heeding our call for immediate inflation relief for Michiganders. But when it comes to lower taxes, her actions have too frequently failed to match her words. Michiganders have too often played Charlie Brown to the governor’s Lucy as she yanks away her promises of tax relief at the last second."

On Tuesday, Governor Whitmer signed the first piece of legislation of the new term, a Democrat-introduced supplemental spending bill that will put $1.1 billion toward various state investment costs.

• Spending Bill Signed:Whitmer signs first legislation of new, Democrat-led term

Investments in Tuesday's spending plan include:

• $200 million for an Escanaba paper mill in the Upper Peninsula
• $150 million for the state's economic growth fund, Strategic Outreach and Attraction Reserve (SOAR)
• $150 million to build a program to give tax credits for affordable housing
• $100 million for community revitalization grants
• $75 million for small businesses most impacted by the COVID-19 pandemic
• $75 million for blight elimination
• $20 million for law enforcement training

An additional nearly $150 million was marked to go toward closing out the books for the 2022 fiscal year.