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Michigan legislature wraps up retirement, earned income tax credit, inflation checks in deal

A Michigan proposal detailed Monday, February 6, would provide one-time $180 checks to residents, cut taxes on pensions, and increase tax breaks for low-and moderate-income earners.

Michigan Democrats are celebrating the plan. Governor Gretchen Whitmer says her inflation relief checks are the best way to help residents right away.

“This $180 check dwarfs any help that doing nothing and hoping that something that may or may not go into effect might assist people," Whitmer said.

Democratic Senate Majority Leader Winnie Brinks says the goal of the checks is to help residents deal with inflation.

"We know prices are up and everybody is feeling the squeeze," Brinks said. "Those extra cents per item at the grocery store add up and it affects all Michiganders regardless of income. We are in a position to help offset some of those costs with this smart one-time investment that will help people."

Whitmer’s team estimates the checks could carry an $800-million price tag.

Republicans worry it could cost the state an income tax cut projected to take effect if current revenue projections hold. Jeff Wiggins is spokesperson for Senate Minority Leader Aric Nesbitt.

"We want policies that provide long-term relief and real relief," Nesbitt said. "Not something that’s part of PR talking points or something just to catch your eye. Something that will drastically impact families."

No timeline has been released for getting the proposal through the legislature. Specific bill language for the Democratic proposal isn’t publicly available yet.