Rep. Annette Glenn, R-Midland, Thursday announced her support for a plan that will lower income taxes for all Michiganders.
“This is a plan that prioritizes income tax relief for everyone in Michigan — not just a select few,” Glenn said after a joint hearing of the House Appropriations and Tax Policy committees. “Inflation is crushing household budgets all across our state. Anyone who has visited a grocery store or gas station recently can attest to that. This plan will help workers, families and seniors hang onto more of their own hard-earned money.”
The plan is advancing to the house floor for further consideration.
House Bill 5838 provides an estimated $1.7 billion in annual, ongoing tax relief. It starts with rolling back the income tax rate to 3.9% – down from the current 4.25% – for all individual payers of the Michigan income tax.
Seniors would be in line for additional relief. The income exempted from taxes for those 62 and older would rise to $20,000 for individual filers and $40,000 for joint filers. An additional exemption would be applied specifically to retirement income — also at $20,000 for single filers and $40,000 for joint filers.
Glenn — a member of the House Appropriations Committee — was one of the first Michigan state lawmakers to say tax relief should be included in the state’s next budget plans. She noted the advancing house plan provides more comprehensive tax relief for seniors than other plans that have been announced.
Michigan House committees also today advanced House Bill 5054, which provides $1.5 billion in one-time funding to reduce debt and improve the finances of public employee retirement systems. Most of the funding would go to pension plans for local governments and road commissions, with an additional $350 million to improve financing in the Michigan State Police retirement system.
“Improving the finances of these systems today will help local governments continue to provide essential public services well into the future,” Glenn said. “It will also help ensure municipal workers who served our communities for years will receive the benefits they’ve been promised in retirement.”