House Bill 4001
House Bill 4001, signed into law in Michigan, has the potential to provide significant financial relief to working families and retirees in the state. The bill is designed to support households struggling with the pandemic’s impact and deliver an increase to the economy. This article aims to provide a brief overview of the bill’s key provisions, its potential benefits, and the responses it has received.
The Lowering MI Costs plan, which is part of House Bill 4001, includes phasing out the retirement tax, equalizing the exemption on public and private pensions, and quintupling the Michigan Working Families Tax Credit match of the federal Earned Income Tax Credit. The bill is expected to benefit almost half the children in Michigan, with an average combined tax refund of $3,150 going to 700,000 families. The phasing out of the retirement tax over four years is also expected to deliver an average of $1,000 to 500,000 households.
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State Representative Angela Witwer, who sponsored the bill, worked to repeal the retirement tax and expand the Working Families Tax Credit. Governor Gretchen Whitmer, Senate Majority Leader Winnie Brinks, Speaker of the House Joe Tate, and members of the Michigan legislature supported the bill, highlighting the importance of providing financial relief to families struggling to make ends meet.
According to the official website of Michigan State, the bill has been welcomed by several organizations that advocate for working families, including AARP Michigan, United Way for Southeastern Michigan, and the Michigan Education Association. These organizations lauded the bill’s provisions emphasizing the increase in the Earned Income Tax Credit and the meaningful investment in households across the state.
In conclusion, House Bill 4001 provides much-needed financial relief to working families and retirees in Michigan, reflecting the state’s commitment to supporting its residents. The bill’s provisions are expected to benefit almost half the children in the state, delivering an average combined tax refund of $3,150 to 700,000 families. The bill’s passage is a positive step towards supporting the financial security of Michigan residents, and its provisions may have more comprehensive economic advantages.
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