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Inflation relief checks for Michigan taxpayers: How much will Gov. Whitmer give to citizens?

The governor of the state is to implement a new tax rebate programme as the state government is expected to post a large budget surplus.

Gov. Whitmer was re-elected in Michigan, with voters also approving a ballot measure to protect abortion rights. Two House races are too close to call.

Michigan’s government has a dilemma. It is expected to produce a budget surplus of nearly $9 billion by the end of the budget year of 30 September. $6 billion of that will need to be spent this year and the state government has been considering its options.

The Democrat governor, Gretchen Whitmer, announced on Monday that she intends to get a $180 check to Michigan residents. As a part of the ‘Lowering MI Cost Plan,’ the checks would need to be agreed through the upper and lower legislative houses. At present these are both controlled by Democrats which could make negotiations a formality.

“This is the largest tax break in decades,” Whitmer said.

What else is included in the Lowering MI Cost Plan?

There are three main areas of the savings plan. The Democrats aim to:

  • Repeal the retirement tax, which would amount to savings of $1,000 a year for senior households
  • Boost the Working Families Tax Credit, which would amount to $3,150 in tax returns to low-income residents
  • Send a $180 tax rebate to residents

“Inflation has driven the cost up on everyday goods, which is squeezing household budgets and forcing families to forego necessities,” Whitmer, Senate Majority Leader Winnie Brinks of Grand Rapids and House Speaker Joe Tate of Detroit said in a joint statement.

“That’s why they sent us to Lansing to lower costs and put more money back into people’s pockets. We heard Michiganders loud and clear.”

Republicans have instead ask to lower state income tax instead of checks being sent.