New MI Plan Would Send Out 'Inflation Relief' Checks, Whitmer Says

MICHIGAN — State Democrats and Gov. Gretchen Whitmer proposed Monday sending out $180 inflation relief checks to all Michigan taxpayers.

The plan to send out the checks, which would come from the state's general fund, is part of a larger package focused on rolling back the retirement tax and boosting the earned income tax credit, Whitmer said.

Repealing the retirement tax will save 500,000 Michigan households an average of $1,000 a year and increasing the Working Families Tax Credit would put an average of $3,150 back into the pockets of 700,000 Michiganders, Whitmer said.

Democrats argued the package would immediately save Michiganders thousands of dollars and be retroactive, meaning the tax changes would benefit people this year, Whitmer said.

The $180 checks would cost the state $800 million from its $9.2 billion surplus and would be sent out "as soon as possible," Whitmer said.

"This is the largest tax break for working-class families and seniors in decades," Whitmer said in a Monday morning news conference.

Although Democrats control both chambers in Lansing, they would need some Republicans to join in passing the package for it to take effect immediately.

Republicans have indicated support for increasing the Earned Income Tax Credit, but have largely opposed the pension tax repeal plan, claiming it wouldn't cover all types of retirement income.

Representatives in the state House and Senate could vote on the measure as soon as this week.