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MI Senate passes Whitmer’s early proposals

Two of the tax plans outlined in Wednesday night’s State of the State address have made it out of the Michigan Senate

One proposal would allow former public workers to deduct their pension income and provide other breaks for private retirees.

Democratic Senator Kevin Hertel says his bill would undo taxes on retirement enacted in 2011.

“A 4.25% tax might not sound like a lot but when you’re living on a fixed income, every little bit counts. And so that made it difficult for seniors across our state to afford the things they need like groceries and that’s only been exacerbated by the increased costs we’re seeing.” 

Republicans argue the policy wouldn’t do enough to support older Michiganders who don’t have pensions.

Another bill passed would quintuple a tax credit for low and moderate income workers.

Critics worry about the risk of improper payments.

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