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Gov. Whitmer Outlines More for MI Money Plan to Save Michiganders Money

FOR IMMEDIATE RELEASE: 

March 18, 2022

Contact: Press@michigan.gov

 

Gov. Whitmer Outlines More for MI Money Plan to Save Michiganders Money

Governor calls for pausing sales tax on gas, eliminating retirement tax on seniors, tripling tax credit for working families

 

LANSING, Mich. — Today, Governor Gretchen Whitmer outlined her priorities to save Michigan drivers, seniors, and working families money. The More for MI Money Plan builds on proposals announced by the governor during her 2022 State of the State address to eliminate the retirement tax on seniors and triple the tax credit for working families and temporarily pausing the state sales tax on gas.

“These are tough times, and Michiganders need relief. I’m ready to work across the aisle with the legislature to negotiate a bipartisan solution that cuts taxes and lowers costs for drivers, seniors, and working families.

“We can start by pausing the sales tax on fuel. A short-term pause is a fiscally-responsible action we can take that will provide drivers relief at the pump right now – not next year – while also protecting funding for road repairs and saving tens of thousands of good-paying construction jobs. While I am open to negotiating on alternative proposals, I will not support legislation that jeopardizes road repairs, construction jobs, or funding for local schools.

“Lowering prices at the pump is an important short-term action to put money in people’s pockets, but there is more we must do. My administration is already working to deliver $400 refund checks to every insured Michigan driver, calling on Congress to suspend the federal gas tax, and working to pass a budget that would repeal the retirement tax and triple a tax credit for 730,000 working families. Cutting taxes for seniors and working families will uplift over 1.2 million Michigan families in the long run, putting thousands back in their pockets so they are not as heavily impacted by price increases.

“I look forward to meeting with Republican and Democratic leaders next week to negotiate on our shared priorities. I’ll work with anyone to help Michiganders get more for their money. Let’s get this done.”

 

Economy

The numbers are clear: Michigan’s economy is on the rise. According to Bloomberg, the state experienced its best economic recovery in history over the last two years. Michigan is #1 nationwide based on equally-weighted measures of employment, personal income, home prices, and stock market performance of publicly-traded companies. The state is also in the midst of a manufacturing boom, having added 20,000 auto jobs and counting since Governor Whitmer took office and many other high-skill, in-demand jobs in field ranging from semiconductor chips to software to agriculture. Michigan is a standout for investors with bonds returning better rates than ever, and the state went from a projected $3 billion deficit at the beginning of the pandemic to a $7 billion surplus today. Underneath the positive topline numbers, however, are families who are feeling squeezed at the grocery store and by increasing prices at the pump because of Putin’s invasion of Ukraine.

 

Roads

Since Governor Whitmer took office, the State of Michigan has invested nearly $4.75 billion to repair, replace, or rehabilitate over 13,000 lane miles of road and over 900 bridges. The Governor’s $3.5 billion Rebuilding Michigan bond plan is moving dirt to fix roads with the right mix and materials, supporting 45,000 jobs, and ensuring workers can get to work and parents can drop their kids off at school safely.

 

Cutting Taxes

In the governor’s 2022 State of the State Address, Governor Whitmer proposed tax cuts for seniors and working families. She proposed a roll back of the retirement tax which would put an average of $1,000 back in the pockets of half a million seniors who worked hard and played by the rules. She also proposed tripling the Michigan Earned Income Tax Credit, which would deliver a combined $3,000 tax refund in the pockets of 730,000 working families. These tax cuts will put thousands of dollars back in the pockets of over 1.2 million households across Michigan, ensuring they are not as heavily impacted by price increases.

Recently, the governor signed a bipartisan tax cut for small businesses, allowing small businesses owners to exempt more of their personal property. 

 

Lowering the Cost of Prescription Drugs

In her 2022 State of the State address, Governor Whitmer spoke about Attorney General Dana Nessel’s ongoing investigation into one of the three largest drug companies that manufactures nearly all the insulin in the United States. The Attorney General is seeking to use the Michigan Consumer Protection Act to investigate the role drug companies play in raising prices. Lowering the cost of insulin will save lives and help Michiganders pay the bills, put food on the table, or save for the future. Governor Whitmer will work with anyone to hold drug companies accountable, lower the cost of insulin, and save lives.  

The Governor also recently signed a bipartisan bill requiring pharmacy benefit managers to file transparency reports, ensuring Michiganders have access to the information about the backend cost and profit of the medication they are being prescribed. It promotes oversight by requiring Pharmacy Benefit Managers to acquire a license from the State of Michigan.

 

Economic Development

Governor Whitmer signed bipartisan legislation empowering Michigan’s economic development with a fund to give the Michigan Economic Development Corporation, or MEDC, a new set of powerful tools to land some of the huge projects in their pipeline that would lead to billions in investment and tens of thousands of jobs. The legislation led to GM’s announcement of a $7 billion investment in Michigan building electric vehicles and batteries. It also set up a fund for small business relief, building on work the state has done since March 2020 to set up 23 economic relief programs and deliver over $240 million to small businesses in all 83 Michigan counties. 

 

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