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Whitmer vetoes bill to reduce income tax rate

Tax reform
Pixabay

Governor Gretchen Whitmer has vetoed a bill that would reduce the state's income tax rate as part of a plan to help families struggling with the challenges of inflation.

The veto was no surprise since Whitmer vetoed a similar bill earlier this year. Whitmer has supported a sales tax holiday or a one-time tax rebate, which would not permanently disrupt the state's revenue stream and perhaps create future budget challenges. There's a budget windfall due to better-than-expected tax collections, as well as federal recovery assistance.

Republicans say they will continue to send tax rollback bills to Whitmer's desk, regardless of her willingness to sign them. Whitmer says GOP lawmakers won't bargain on a serious tax bill.