The Michigan Senate failed to deliver immediate effect for Gov. Gretchen Whitmer’s (D) tax scam late Wednesday, thus protecting an anticipated income tax cut.
Due to a nearly $10 billion budget surplus, a state law triggering an automatic cut was about to be tripped. Whitmer and legislative Democrats attempted to kneecap that by passing supplemental spending bills this year for the fiscal year that ended in September 2022.
One aspect of Whitmer’s scam was to send $180 checks to tax filers – not individuals – a plot that would have effectively punished married couples who file jointly.
Michigan Capitol Confidential reported Whitmer’s Senate allies were unable to muster the two-thirds vote necessary to enact immediate effect. Therefore, the state income tax rate will drop from 4.25 percent to 4.05 percent.
“After Gov. Whitmer pulled out all the stops to ram through her plot to hike taxes on Michiganders and small businesses, Republicans stood strong for taxpayers in our state,” House Republican Leader Matt Hall said in a statement. “The governor backed down, and her disastrous scheme failed. Now, every Michigan resident and small business will get a permanent income tax cut as they wrestle with the rising costs of living, now and in the years ahead. And working families and retired seniors struggling the most will see even more relief, under proposals championed by Republicans — without the extra baggage of Gov. Whitmer’s tax hike.”
The Detroit News explained Whitmer’s scheme this way:
The tax legislation originally included a plan to give out $180 rebate checks, totaling about $800 million, to circumvent an anticipated drop in the 4.25% personal income tax. A 2015 state law, which tied the income tax to revenues, is expected to soon decrease the rate to 4.05%.
However, for the rebates to be sent out to avoid the cut, the bill required the changes in state tax law to take effect by April 19.
Senate Democrats, who hold a 20-18 majority, failed on Tuesday to get the 26-vote supermajority support needed to have the bill take effect earlier. Without two-thirds backing for immediate effect, the measure takes effect in 2024, too late for the rebate checks.
“For weeks, the Governor has maneuvered to stop this permanent tax cut from happening and Republicans have stood firm to ensure that all Michiganders finally receive this relief from historic inflation,” Senate Minority Leader Aric Nesbitt said, according to Mlive. “Lowering personal income taxes should be just one part of a larger and more comprehensive plan to provide the people of our state with relief from inflation.”