Urgent need for a negotiated tax cut plan Urgent need for a negotiated tax cut plan
Larry Feldman, Letter to the Editor, 08/04/2022
Governor Whitmer and the Republican-controlled Michigan state legislature are in agreement about the importance of using the current budget surplus to provide tax relief to Michigan residents. They are not, however, in agreement about how best to provide that relief.
The legislature proposed a tax cut plan that the Governor vetoed because she found it to be “fiscally irresponsible”. The non-partisan Citizen Research Council of Michigan examined the Republican plan and concluded that the governor was correct. They reported that if the Republican plan were to be signed into law there would need to be a permanent 1.3 billion dollar cut to the state’s general fund starting October 1, 2023. The general fund pays for public safety, health and human services, education, and other essential services. Reducing that fund by 1.3 billion dollars would severely endanger the safety, health, and education of Michiganders.
The governor has proposed a fiscally responsible tax cut plan. Her plan calls for repealing the tax on pensions that was initiated by former governor Snyder, increasing the state’s earned income tax credit for low-and-moderate income families, suspending the state sales tax on gasoline, and sending a $500 tax rebate check to Michigan’s working families. The governor’s plan provides immediate economic relief without compromising essential services.
Governor Whitmer and the Republican-controlled state legislature were able to negotiate an agreement on the spending part of next year’s budget, but they have not yet agreed on a fiscally responsible plan for tax cuts and inflation relief. Hopefully they will do so as soon as possible. The time for constructive collaboration is now!