Cybersecdn- Michigan Governor Gretchen Whitmer, alongside state officials, engaged in a comprehensive discussion in Lansing about the impact of the new law rolling back state taxes on pensions. This law, slated to take effect in February, begins its phase-out with the current year’s tax filings for the 2023 tax year.
State Senate Appropriations Committee Chair Sarah Anthony highlighted the financial relief this would bring to approximately 500,000 residents, with an average savings of $1,000. The law marks a significant shift from the 2011 changes, offering tax relief on retirement and pension benefits by 2026.
The legislative landscape in Michigan is complex, with Democrats holding a temporary even split with Republicans in the House due to vacant seats awaiting special elections. Despite this, Democrats are set to maintain legislative control, with Governor Whitmer optimistic about early action on key issues like economic development and prescription drug affordability.
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House Republicans, advocating for a shared power agreement during the even split, express concerns that the pension tax phase-out primarily benefits older Michiganders with pension plans, neglecting the working population. They have previously proposed a more inclusive tax cut for older adults.
Governor Whitmer’s agenda also includes initiatives for research and development tax credits, addressing Michigan’s competitive stance against other states and countries. Bipartisan support is expected for legislation focusing on school safety, local road funding, and strategies to boost Michigan’s population and economic growth.
