LANSING, Mich. — The Senate on Thursday approved a $2.5 billion inflation relief plan that would help Michigan workers, families, seniors and veterans to better afford the increasing costs of living in the state.
“Every Michigander is experiencing the crushing weight of inflation, as budgets are stretched week by week from rising prices for gas and everyday essentials,” said Sen. Jon Bumstead, R-North Muskegon. “The inflation relief plan we approved today will provide much-needed financial help to combat these very real problems, and I am hopeful the governor will join us and sign the plan as soon as it reaches her desk.”
A key component of the plan, sponsored by Bumstead, would ensure 100% disabled military veterans and the spouses of those killed in action receive a 100% property tax exemption through the same process that currently exists. It would also set a $2,000 property tax cap for veterans who are more than 50% disabled but less than 100% disabled. The plan will hold local governments harmless by requiring the state to reimburse them for the property tax exemptions, alleviating a significant financial burden.
“This is a small but important reform that protects our 100% disabled veterans’ property tax credits and the process they use to obtain them,” Bumstead said. “By putting the burden of administering the credit on the state’s shoulders, we’ll alleviate the financial stress many local governments are experiencing throughout Michigan. The process for eligible veterans to claim their credit will remain the same, while cities, villages, townships, and counties get much-needed financial relief — it’s a win-win.”
The MI Family Inflation Relief Plan will also help residents by:
- Offering a $500 per child tax credit for those 19 and under.
- Increasing the personal income tax deduction 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%.
The bills now go to the House of Representatives for consideration.