The gas tax hike would cost the average Michigan driver $23 a month, according to the Whitmer administration, but some low-income families could save $30 a month through expansion of the Earned Income Tax Credit and some seniors could save $65 a month from the pension tax repeal.
A pension bill introduced by Rep. Joe Bellino, R-Monroe, would revert to the retirement tax structure in place prior to 2011 by exempting public pensions from being taxed and implementing higher deductibles for state income taxes for other private retirement incomes.
Whitmer argued the average Michigan motorist is already paying more than $500 a year in car repairs because of damage caused by poor-quality roads.
“The average person in our state will feel relief when we do this and we do it right,” she said.
But Republicans did not buy the argument.
“I think this budget overall taxes too much, spends too much and doesn’t pay down enough debt,” said Sen. Aric Nesbitt, R-Lawton, who made clear he would be a “no” vote on the gas tax proposal.
In tax year 2016, more than 770,000 Michigan residents claimed the state Earned Income Tax Credit, according to the Department of Treasury. The average claimant received a $148 credit for a collective total of $114 million.
The tax credit is a “bipartisan, pro-work policy and one of our greatest weapons against poverty,” said Gilda Jacobs, a Democratic former state lawmaker who is president and CEO of the Michigan League for Public Policy. She called Whitmer’s plan a “fantastic start” to restoring the match rate to 20 percent of the federal version. March 5, 2019 – The Detroit News