LANSING, Mich. — Sen. Mark Huizenga on Thursday supported legislation to increase the state’s Earned Income Tax Credit (EITC) and repeal the so-called pension tax on certain retirement income.
“I ran for public office to solve problems for the people of West Michigan,” said Huizenga, R-Walker. “Many Michigan families are struggling to make ends meet, and this reform would reduce taxes on many of our seniors and provide immediate relief to working people.”
Senate Bill 1 would exempt certain retirement income from the state income tax, such as public retirement or pension benefits.
SB 3 would increase the state’s EITC from 6% to 30% of the federal EITC beginning with the 2022 tax year. Taxpayers would not actually claim the extra 24% for the 2022 tax year on their tax returns. Instead, for the 2022 tax year, the state would figure the amount owed to the taxpayer that is above the current 6% and provide that credit as a tax refund.
“We have a historic surplus, and I will continue fighting to provide much-needed relief to everyone in our state,” Huizenga said. “My focus continues to be on reducing taxes on Michigan taxpayers and ensuring they keep more of their hard-earned money.”
SBs 1 and 3 now head to the House of Representatives for consideration.