LANSING, Mich. — Sen. Jon Bumstead on Friday blasted the decision of Gov. Gretchen Whitmer to veto a $2.5 billion inflation relief plan that would have helped Michigan workers, families, seniors and veterans to better afford the increasing costs of living in the state.
“I am thoroughly disappointed that, once again, Gov. Whitmer is neglecting West Michigan families struggling to afford the increasing costs of living in our state,” said Bumstead, R-North Muskegon, who sponsored the veterans property tax proposal in the plan. “The fact is, every Michigander is experiencing the crushing weight of inflation, as more and more people week after week find it harder to pay for gas and their everyday essentials. The commonsense plan we approved would have provided residents much-needed financial help to combat these very real problems.”
Bumstead’s veterans property tax exemption bill would have ensured 100% disabled military veterans and the spouses of those killed in action continued to receive a 100% property tax exemption through the same process that currently exists. It would have also set a $2,000 property tax cap for veterans who are more than 50% disabled but less than 100% disabled. The plan would also have held local governments harmless by requiring the state to reimburse them for the property tax exemptions, alleviating a significant financial burden on their end.
“This was a small but meaningful reform that would have protected our 100% disabled veterans property tax credits and the process they use to obtain them, while offering some property tax exemption to even more veterans who were disabled while serving this country,” Bumstead said. “And by putting the burden of administering the credit on the state’s shoulders, we would have alleviated the financial stress many local governments are experiencing throughout Michigan. All the while, the process for eligible veterans to claim their credit would have remained the same, yet cities, villages, townships, and counties would have received much-needed financial relief.”
The MI Family Inflation Relief Plan would have helped residents by:
- Offering a $500 per child tax credit for those 19 and under.
- Increasing the personal income tax exemption by $1,800.
- Raising the personal exemption for seniors 67 and older to $21,800 for individuals and $43,600 for couples and tying subsequent increases to the rate of inflation.
- Lowering the state income tax to 4%.
- Restoring the Earned Income Tax Credit to 20%.
“With the stroke of her pen, the governor has said ‘too bad’ to workers, families, seniors and veterans,” Bumstead said.