Lowering MI Costs
Senate Democrats Deliver Historic $1 Billion in Tax Cuts for Michiganders
Rising costs are making it harder for families to put food on the table and fill up their gas tank. To help support Michiganders facing economic challenges, Senate Democrats championed the Lowering MI Costs Plan in 2023 — the largest tax relief initiative in Michigan history, which cut taxes by $1 billion for folks who need it most. This plan repealed the unfair retirement tax and expanded tax credits for working families, while also investing millions of dollars in housing and revitalization grants to help make Michigan a place people are proud to call home.
Continue reading to learn more.
Take Advantage of the Largest Tax Break for Working Families in Michigan History
Historic expansion of the Earned Income Tax Credit saves families thousands of dollars a year
Senate Democrats have been focused on cutting taxes and making it easier for people to raise their family here in Michigan. That’s why we worked to deliver the biggest tax break for working families in Michigan history. During the last legislative session, we quintupled Michigan’s match of the Earned Income Tax Credit (EITC) from 6% to 30% to help families save an average of $3,150 when combined with the federal credit.
What is it? The Michigan Earned Income Tax Credit (EITC) is a tax benefit for working people with income below a certain level.
What benefits does it provide? It reduces the taxes you owe, putting more money in your pocket! Even if you do not owe taxes, it could result in a refund. This extra relief can help you care for your family, meet living expenses, or save for the future.
Who qualifies? To qualify for the Michigan EITC, you must qualify for the federal EITC. You can verify your eligibility here.
How can I claim it? Verify your federal EITC eligibility, file your federal income tax return with the IRS and claim the federal EITC, then file the Michigan individual income tax return and claim the Michigan EITC. For more information, click here.
Learn How the Retirement Tax Rollback Is Lowering Costs for Seniors
By repealing the retirement tax, we’re helping Michigan retirees save up to $1,000 more a year
Michigan’s retirement tax robbed seniors of their promised retirement benefits for more than a decade. That’s why Senate Democrats led the effort to repeal this unfair tax, which will save nearly 500,000 seniors $1,000 annually — helping them to enjoy a safe, secure, and happy retirement.
Until the full repeal takes effect in 2026, you have multiple options to choose from when it comes to your retirement benefits. You may wish to consult a qualified tax preparer to ensure you can deduct the maximum amount of retirement benefits. For more information, visit Michigan.gov/taxes.
A First Step to Lowering Housing Costs While Building Up Michigan Communities
Strategic investments in housing and revitalization grants are helping more families make it in Michigan
The Lowering MI Costs Plan also invested $50 million of surplus revenue in sustainable and dedicated funding to accessible housing to help veterans, seniors, people with disabilities, and working families find a place to call home.
The legislation also provided $50 million for Revitalization and Placemaking grants to turn underutilized office, commercial, and community spaces into places for people to enjoy, including affordable housing, parks, outdoor dining spaces, community gathering places, and more.
“I am very pleased to see investments being made to bring more affordable housing, small businesses and employment opportunities to Ecorse. This funding will be transformational for our community — helping to turn an area that has been vacant for decades into a vibrant new space that will address residents’ needs and uplift our local economy. I am grateful for the work of everyone who is involved in helping this project come to fruition,and I look forward to seeing the positive impact itwill have on the community.”
– Senator Erika Geiss, District 1
“I am excited about the latest investments my colleagues and I have worked to secure to invest in our state and the lives of Michiganders — including funding to aid in the redevelopment of the historic Chelsea Rockwell building, which has long been vacant and deserving of a new lease on life. As a county commissioner I worked to support this important housing effort and, now as a State Senator, I am glad to see it progressing. Having the opportunity to utilize state dollars in a meaningful way is a responsibility I take seriously. I look forward to continuing to work with my fellow legislators to strengthen our economy and help make Michigan a top-performing state.”
– Senator Sue Shink, District 14
Lowering Costs Newsroom
Learn more about the many ways Senate Democrats are fighting to cut taxes and lower costs for everyday Michiganders.
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The Rx Kids Initiative: Leading Flint’s Children to a Brighter Future
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Michigan Prescription Drug Affordability Board Will Rein in Rising Costs of Life-Saving Drugs
Senate legislation will hold Big Pharma accountable with creation of new board LANSING, Mich. (Sept. 12, 2023) — Today, a group of Michigan Senators introduced a bill package to create a Prescription Drug Affordability Board in Michigan (PDAB) — an independent body...
Senate Democrats Celebrate Passage of Historic Tax Relief
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Senate Democratic Majority Passes Working Families Tax Credit, Pension Tax Repeal to Immediately Support Struggling Residents
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