LANSING, Mich. (WJRT) - Republicans' second attempt at passing a $2.5 billion tax cut plan in Michigan ended with another veto.
Gov. Gretchen Whitmer vetoed House Bill 4568 on Friday. The bill would have cut income tax rates to 4%, increased the Earned Income Tax Credit, increased standard deductions, provided a $500 Child Tax Credit and more.
Republicans say Michigan easily can afford to provide tax relief while the state continues collecting revenue amounts way over budget. They crafted the tax cut plan based on Whitmer's criticism of their earlier failed proposal.
"We keep trying to provide relief from record inflation and high prices at the pump, but the governor keeps turning it down and denying the people we represent the help they need," said Republican State Rep. Matt Hall of Marshall.
Whitmer has pushed for an immediate $500 tax rebate, but she hasn't provided specifics for when or how that money would be disbursed. She also proposed an increased Earned Income Tax Credit and repeal of income taxes on retirement income.
The earlier Republican plan that Whitmer also vetoed included income tax rate reductions, decreased standard deductions and the $500 Child Tax Credit. Hall said Republicans will continue working to provide tax relief for Michigan residents and businesses.
A Consensus Revenue Estimating Conference in May concluded the state will rake in $3 billion more than anticipated for the current fiscal year.
