LANSING, MI (WKZO AM/FM) – Governor Gretchen Whitmer delivered the 2022 State of the State address on Wednesday evening, which was done in a virtual format for the second year in a row.
Among other topics discussed, Governor Whitmer talked about her intention to repeal or lower various taxes, one being the retirement tax.
“Repealing the retirement tax will put Michiganders first and save half a million households $1,000 a year,” Whitmer said during her speech. “Michiganders who have worked hard, played by the rules, and budgeted for their whole lives should be able to retire and keep all of their hard-earned dollars. Putting money back in the pockets of retirees will help them afford the essentials from prescriptions, rent, utilities, car payments, to gifts for their grandkids.”
Over the coming years, Whitmer says this proposal would exempt public pensions and restore deductions for private retirement income, including private-sector pensions, withdrawals from individual retirement accounts (IRAs), and the portion of a 401k account that is subject to an employer match.
Another proposal she mentioned was increasing Michigan’s Earned Income Tax Credit, or EITC, a tax cut for working families.
She says that increasing the EITC would deliver an average combined tax refund of $3,000 to 730,000 Michiganders, helping them pay the bills and put food on the table.
“Raising the state EITC puts Michiganders first by putting nearly $3,000 back in their pockets when paired with the federal EITC,” Whitmer said. “Michiganders who work full-time but still can’t get ahead deserve to keep more of their hard-earned dollars. As part the MI New Economy plan, I set an ambitious goal of lifting 100,000 working families out of poverty.
Delivering on this tax cut for working families will pull over 22,000 Michiganders out of working poverty and make significant progress towards that goal, while raising incomes for 730,000 workers and benefitting nearly 1 million kids—nearly half the kids in Michigan. This refund for working families is a game-changer for so many Michiganders, and I know we can work together to get this done.”
To view a video of Whitmer’s State of the State Address in its entirety, click here.
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