Governor Gretchen Whitmer sent a strong signal Wednesday that a $2.5 billion tax cut plan adopted this week by the Michigan Senate would be vetoed if it reaches her desk.
Whitmer said the effects of the broad corporate and individual income tax rate reductions in the Senate Republican plan would be small compared to her preferred tax breaks for lower income families.
“They would not have a meaningful improvement in the quality of life of people that we know are struggling in this moment,” Whitmer said following remarks to the Lansing Regional Chamber of Commerce.
The Democratic governor said she will continue to push for a targeted approach that would benefit people who need tax relief the most. That would include boosting the Michigan Earned Income Tax Credit and repealing the tax on some pension income.
Whitmer said the Republican plan would use short-term windfalls and federal recovery money to the costs of the rollback, “and would undermine our ability to fund things like education and infrastructure and public safety."
"Any policy is going to have to be negotiated with the budget because you have to show me we’re going to be able to afford this long term," she said.
The Whitmer administration is negotiating with the Legislature on a budget for the fiscal year that begins October 1.
