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LaSata amendment to fund major tax relief

LANSING, Mich. — The Michigan Senate on Thursday approved two measures aimed at providing tax relief for Michiganders.

The plan, which is funded, in-part by an amendment sponsored by Sen. Kim LaSata to set aside funding in the fiscal year 2023 budget, aims to help families across the state offset some of the burden of rising costs of everyday items and services.

“Families in Southwest Michigan and across the state are seeing their budgets grow out of control — even after tightening their belts. Residents are being priced out of everyday life,” said LaSata, R-Niles. “I worked to ensure we set aside funds to revisit tax relief to help people with the absurd costs they are seeing across the board.”

The proposal would use surplus funding and funds set aside from LaSata’s amendment to provide a $2.5 billion tax cut for Michigan workers, seniors and veterans.

The MI Family Inflation Relief Plan would help every Michigander by lowering the state’s income tax to 4% and increasing the personal income tax deduction by $1,800. It would also support Michigan families by creating a $500 tax credit for each child under the age of 19. Combined with other savings in the plan, a family of four could see savings of approximately $1,300 annually.

House Bill 4568 and Senate Bill 784 would also increase the tax exemption for Michigan seniors over 67 to $21,800 for individuals and $43,600 for couples and ensure Michigan’s fully disabled veterans and the spouses of those lost in combat a 100% property tax exemption.

“This legislation focuses on simply letting people keep more of the money they earn, and for Michigan seniors, money they’ve worked their whole lives to save,” LaSata said. “Years of responsible budgeting and careful, efficient use of taxpayer dollars has put us in a position to afford this. This money belongs to the people and I’ve long supported efforts to get it back to them.

“I’m happy to see we’re moving forward with that effort and using these funds to help Michiganders instead of growing state government.”