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Republican U.S. Senate candidate Ted Budd talks during a campaign rally with Sen. Ted Cruz in Selma, N.C., Tuesday, Oct. 25, 2022.

Ethan Hyman

ehyman@newsobserver.com

It didn’t take long for Ted Budd, recently sworn in as North Carolina’s newest U.S. senator, to start twisting the truth.

Budd has joined the fight to “stop Biden’s IRS expansion,” announcing Friday that he has sponsored a bill that will spare working families from the terror of 87,000 new IRS agents.

Here’s the thing: it’s based on a wildly misleading claim that has been repeatedly debunked.

The bill — known as the BAD IRS Activities Act — would rescind the roughly $70 billion in Internal Revenue Service funding that Congress approved last year as part of the Inflation Reduction Act. A similar bill was passed by the House earlier this month as its very first piece of legislation under a new Republican majority.

Republicans allege that those dollars will be used to assemble an “army of 87,000 IRS agents” who will target hard-working Americans. Some have even gone so far as to say that the agents will be armed. In a press release, Budd said the government “should not be hiring 87,000 new IRS agents to treat working families and small startup businesses like tax cheats.”

It’s a good thing that’s not actually happening.

The GOP has pushed this wildly exaggerated narrative for months, even though it has never been true. The 87,000 figure was pulled without context from a May 2021 estimate from the Treasury Department, and it captures the total number of employees the IRS hopes to hire over the course of the next decade.

First of all — as a slew of fact-checkers have pointed out — only a fraction of those hires would be enforcement agents. Second, the majority of those hires will be necessary to simply maintain the size of the agency’s shrinking workforce, as some 50,000 workers are expected to retire in the next decade. In fact, the funding increases will actually be of benefit to taxpayers, as the services provided by the IRS have suffered over the years due to budget cuts.

If Budd wants to help his constituents, he shouldn’t try to weaken the agency that ensures people pay their taxes. Investing in IRS improvements would generate $180 billion in revenue over 10 years, according to recent Congressional Budget Office estimates. Nobody’s taxes would go up — it would simply ensure compliance with existing tax policies and laws. Rescinding the funding, per Republican wishes, would increase the federal deficit by $114 billion through 2032, the CBO said.

Budd and his colleagues surely know this, but they’re ignoring it because truth doesn’t help them much politically. It’s troubling to see Budd being dishonest after just a couple of weeks on the job, and it doesn’t inspire much hope for the next six years of his term. He might have a new job, but he’s still the same Ted Budd.

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What is the Editorial Board?

The Charlotte Observer and Raleigh News & Observer editorial boards combined in 2019 to provide fuller and more diverse North Carolina opinion content to our readers. The editorial board operates independently from the newsrooms in Charlotte and Raleigh and does not influence the work of the reporting and editing staffs. The combined board is led by N.C. Opinion Editor Peter St. Onge, who is joined in Raleigh by deputy Opinion editor Ned Barnett and opinion writer Sara Pequeño and in Charlotte by Pulitzer Prize winning cartoonist Kevin Siers and opinion writer Paige Masten. Board members also include McClatchy Vice President of Local News Robyn Tomlin, Observer editor Rana Cash, News & Observer editor Bill Church and longtime News & Observer columnist Barry Saunders. For questions about the board or our editorials, email pstonge@charlotteobserver.com.

This story was originally published January 27, 2023 1:35 PM.

Related stories from Charlotte Observer

Originally Appeared Here

State Sen. Kristen McDonald Rivet’s first piece of legislation, which would expand Michigan’s Earned Income Tax Credit, was passed Tuesday by the Michigan Senate’s Housing and Human Services Committee.

The bill is scheduled for a Senate vote later this week.

Members of the Michigan EITC Coalition praised this decision as the bill would expand the tax credit from a 6 percent match of the federal credit to 30 percent. Of states with their own EITC, Michigan currently has one of the lowest percentages in the country. The passage of Senate Bill 3 will make Michigan a national leader in better supporting workers, delivering approximately $600 more annually to struggling working families.   

“I’ve been working on this issue for years so I am over the moon excited,” said McDonald Rivet, D-Bay City. “You only  need to go to your local grocery store and try to buy food for a week for a family to know that families that are living at the bottom edge of our income scales really need some help and they need it right now…This is something we can do immediately. We have the resources at the state to make it happen and I cannot see a reason why partisan bickering would get in the way of this.”

Senate Bill 3 would apply retroactively, providing the tax cut to filers for the 2022 tax year, immediately helping Michigan families dealing with the effects of high inflation.

The bill is supported by more than 230 groups from around Michigan, including influential state business, religious, health and social services organizations, as well as both Republicans and Democrats. 

“It is not political, it’s not partisan,” McDonald Rivet said. “It’s good for Michigan and I expect that we will have significant Republican support.”

State Rep. Bill G. Schuette, R-Midland, agreed that Michigan families will benefit from immediate help. Earlier this month, Schuette introduced legislation with the retroactive component, allowing people to obtain relief on their upcoming tax returns as opposed to waiting a year or more under initial Democrat proposals.

“I’m pleased Senate Democrats have started to respect that urgency by changing their approach to reflect what we’ve initially proposed and making this credit retroactive to the 2022 tax year,” Schuette said. “I’m hopeful this will continue to be a component of plans that move forward. Let’s pass immediate tax relief for all Michiganders. Hard-working families are counting on it.”

McDonald Rivet estimates the bill could be up for Gov. Whitmer’s approval as soon as February.

“I’m very hopeful that it will  maintain a very high level of support as it moves through the process and hope that it would be on the governor’s desk as early as next month,” she said. 

She explained that two-thirds of EITC recipients only receive the credit for two years. 

“It is meant to be a reward for work that helps create a path for families that are economically fragile and working,” she said.

The EITC is a refundable Federal Credit established in 1975 by Michigan’s own President Gerald Ford, with support from both Democrats and Republicans. It was later expanded by President Ronald Reagan. The Michigan EITC was started in 2006 with bipartisan support. 
 
Benefits only go to working taxpayers and phase out at higher incomes, ending at $57,414 for a couple with three dependents.
 
More than 730,000 Michigan households received the state EITC in 2019 – impacting nearly one million Michigan children – putting nearly $110 million back into Michigan’s economy. McDonald Rivet’s proposal would boost that by $460 million to an estimated $570 million.

 

Originally Appeared Here

Shouldn’t they have a role?

Why is the National Archives being left out of these investigations into missing classified documents found years later in current and former presidents’ private possession? Most libraries document the items checked out, identify a date for their return and would aggressively attempt to secure their return. This is a basic expectation of the National Archives’ handling of our government’s classified documents. What else is missing?

Vivienne Armstrong, East Dallas

Too narrow a view

I see the first bill the new House Republicans passed was one to eliminate increased Internal Revenue Service funding provided in the Inflation Reduction Act. The IRS has been starved of funding for years to the point that not only is there a large gap between taxes owed and collected, it’s also impossible to reach the IRS on the phone for help during filing season or at any time. Since we depend on taxes to run our country, it seems prudent to give them the funds needed to do their job. Collecting taxes owed will also help reduce our budget deficit.

The federal government has been demonized for years, ignoring the essential services it provides. It would be nice to have a reasoned discussion about government and spending without all the bomb throwing.

I’ve also heard some Republicans want to eliminate spending to assist the defense of Ukraine. I heard an interview on the radio with a man from The Economist, a conservative publication, who said we’re getting a great deal when we support Ukraine. Our adversary is being weakened and the U.S. has not had to send a single soldier.

I hope Congress will look at the big picture.

Donna Gregory, Dallas

Private school on my dime?

Most families sending a student to private school in Texas (308,611 in the 2022-23 school year, about 5% of all students) are usually able to afford it, so why should the state of Texas supplement that? Especially when it comes at the expense of public education, where most students remain.

Every dollar taken out of the public school system chips away at the overall public school experience, resulting in a less-educated population. If your child qualifies and you can afford to send them to private school, by all means do so. They should have a great education. Just don’t ask the rest of us to pay for it. That’s up to you.

David Seay, Plano

Tip those familiar faces

Re: “Hard work teaches skills,” by Anne Davidoff, Jan. 9 Letters.

Customer service has been a thing of the past for years, but it was even more affected by the pandemic. Staffing shortages have caused employees to be underpaid and overworked. To have high expectations for better service is ludicrous.

We still go out and eat at our favorite haunts, and appreciate that our favorite waitstaff still is able to manage a smile. We tip them even more than we used to because we understand what they are going through.

Chuck Brecht, Rowlett

So thankful for Allred

How I miss being a constituent of Rep. Colin Allred. We were recently redistricted out of Allred’s district, but I can still get pleasure in hearing him call out the crazy stuff that comes out of the mouth of Sen. Ted Cruz.

Whether it is Cruz blaming Damar Hamlin’s cardiac arrest on the COVID-19 vaccine, or blaming Transportation Secretary Pete Buttigieg for the decades-long underfunding (by Congress) and failure to upgrade the Federal Aviation Administration’s air traffic control system, or equating the current classified documents situation in President Joe Biden’s office to former President Donald Trump’s insistence that he was entitled to have them and intended to keep them, Allred points out — in a calm, intelligent way — the nonsense that Cruz often espouses. Maybe he might replace Cruz in the upper chamber next time around?

Scott Nason, Dallas/Preston Hollow

Consistency, anyone?

Does anyone else find it laughably ironic that Sen. Ted Cruz is ready to fight against the government invading our kitchens and taking away our gas stoves, and yet is fine with letting the government invade a woman’s right to privacy and how she governs her own body? Just sayin’ …

B.J. Anderson, Dallas

Your beliefs do not mirror mine

As a result of redistricting, my congressman is now Dr. Michael C. Burgess. His 2022 annual report to his constituents has not been posted to his website. However, he wrote in his 2021 report that, “I do not believe that the government should hinder a doctor’s ability to act in the best interest of their patient. … Patients and doctors should be in charge — not governments.”

His position does not seem consistent with his anti-abortion agenda and history of voting. I don’t object to his strongly held religious beliefs or his belief that life begins at conception. I object to him applying his religious beliefs on behalf of everyone else. And I object to his religious beliefs superseding decades of research in embryology, neurology and developmental neuroscience on when life begins. How much longer will voters, and especially women voters, tolerate politicians who limit their access to health care?

Steve Richardson, Plano

Marine Corps ‘soft’? Nope

Re: “Toughen up our military,” by Pat Grove, Tuesday Letters.

I, too, served in the Marine Corps. I don’t know if I would do it again, but I became much more self-disciplined as a result. I thank the big green machine for that every day. As to whether it is as tough at the present as it was in 1967, I could not say with any veracity.

But I cannot imagine the Marine Corps being soft. The history of that proud organization would not allow that to happen. As a tool for learning hard work, a never-give-up mindset and the ability to see a difficult job through to the end, I recommend the Corps to every high school graduate. Semper fi.

John Hodge, Grand Saline

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Originally Appeared Here

Imagine coming to work every day and facing a workload you know you can’t finish. That no one could finish. Every day you frustrate hundreds, maybe thousands of people seeking your help. The backlog grows out of your control. The reputation of your agency worsens, drip by drip, with each unfulfilled item.

That’s what I imagine life must be like for operators at IRS call centers.

You’ve read the stories, seen the reports for several…

READ MORE

Imagine coming to work every day and facing a workload you know you can’t finish. That no one could finish. Every day you frustrate hundreds, maybe thousands of people seeking your help. The backlog grows out of your control. The reputation of your agency worsens, drip by drip, with each unfulfilled item.

That’s what I imagine life must be like for operators at IRS call centers.

You’ve read the stories, seen the reports for several years now on the agency’s inability to answer phones in reasonable times, and give accurate answers to callers. As National Taxpayer Advocate Eric Collins pointed out, in the first year of the pandemic, the annual calls to IRS nearly tripled to 282 million. Now it’s running at about 172 million, still twice pre-pandemic levels. The main reason is tax return processing slowdowns and letters going to once-empty offices.

Call centers don’t scale the way digital systems do. If a workload for a computer application triples, an agency can add servers or, in today’s parlance, spin up new instances in the elastic commercial cloud. But, unless they can talk like Alvin the Chipmunk, people answering phones can only handle so many calls per hour. Plus, they have no control over what a given incoming call will bring in terms of complexity of the query.

Worse, if someone gets mad at a computer application — and who doesn’t? — they can smash a monitor, crush a keyboard, curse at the top of their lungs, and guess what? The application doesn’t care. It doesn’t even know how you feel. Too many people also feel privileged to take their frustrations out on phone people, including those of the IRS. They do know you’re mad and feel it. They’re caught in the same mad complex of problems the callers are.

As Collins told me, referring to IRS phone people, “They’re the messenger, so to speak. Don’t take it out on them that we have problems in our system.”

She added, “It’s an incredibly difficult job that they have, there’s a lot of expectation. And unfortunately, a lot of the folks by the time they reach a human, they may not be such happy people.” IRS operators “sometimes get the brunt of it.”

The Taxpayer Advocate report notes that the IRS has hired thousands more phone agents, added call-back technology to 35 of its 62 phone lines, to spare people the horrors of on-hold music, and implemented chat-bots on some lines to take some burden off the people.

And then there’s this: The same people who answer the phones also process returns. Imagine that. Time on the phone is time not on returns. And vice versa. It’s a wonder any of them still have hair on their heads.

IRS has a constellation of needs. They’ve all been well documented. On the information technology front, it ultimately must integrate dozens of systems into a single, coherent case management system. In theory that’s when business and personal taxpayers can do most things online in a self-service mode. Which gets back to the Mount Everest of the challenge, namely the individual and business Master File Systems, and how to modernize them. They hold data, Collins said, “going back to the dawn of time.” You can say the same thing about the code they’re programmed in.  It could take until the return of the Messiah before IRS licks the Master File problem.

In the meantime, don’t take it out on the people working the phones.

 

Originally Appeared Here

If you buy a new plug-in electric vehicle (EV) or fuel cell vehicle (FCV) in 2023 or after, you may qualify for a clean vehicle tax credit. Find out if you qualify.

Find information on credits for used clean vehicles, qualified commercial clean vehicles, and new plug-in EVs purchased before 2023.

Who Qualifies

You may qualify for a credit up to $7,500 under Internal Revenue Code Section 30D if you buy a new, qualified plug-in EV or fuel cell electric vehicle (FCV). The Inflation Reduction Act of 2022 changed the rules for this credit for vehicles purchased from 2023 to 2032.

The credit is available to individuals and their businesses.

To qualify, you must:

• Buy it for your own use, not for resale
• Use it primarily in the U.S.

In addition, your modified adjusted gross income (AGI) may not exceed:

• $300,000 for married couples filing jointly 
• $225,000 for heads of households
• $150,000 for all other filers

You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in 1 of the two years, you can claim the credit.

The credit is nonrefundable, so you can’t get back more on the credit than you owe in taxes. You can’t apply any excess credit to future tax years.

If you bought and placed in service a new qualified plug-in electric vehicle (EV) or fuel cell vehicle (FCV) on January 1, 2023 or later and meet certain income limitations, you may be eligible for a clean vehicle tax credit up to $7,500 under Internal Revenue Code Section 30D.

Qualified Manufacturers of the vehicles listed below have indicated that the vehicles are currently eligible for a credit provided other requirements are met.  Check back for additions to this list.

For vehicles purchased in 2022 or before, credit eligibility was determined under different criteria. 

North America Final Assembly and MSRP Requirements

Vehicle make/models that appear in the list below do not automatically qualify. They must also 

• Have undergone final assembly in North America 
• Not exceed a manufacturer suggested retail price (MSRP) of
  • $80,000 for vans, sport utility vehicles and pickup trucks
  • $55,000 for other vehicles

To see if a specific vehicle meets the assembly requirements:

Index to Manufacturers

This manufacturer has entered into a written agreement with us to become a “qualified manufacturer” but hasn’t yet submitted a list of specific makes and models that are eligible. Please check back here for updated information.

 

Model Year	Vehicle Description	Applicable MSRP Limit
2023	Audi Q5 TFSI e Quattro (PHEV)	$80,000

Model Year	Vehicle Description	Applicable MSRP Limit
2021, 2022, 2023	BMW 330e	$55,000
2021, 2022, 2023	BMW X5 xDrive45e	$80,000

Model Year	Vehicle Description	Applicable MSRP Limit
2022, 2023	Ford Escape Plug-In Hybrid	$55,000
2022, 2023	Ford E-Transit	$80,000
2022, 2023	Ford F-150 Lightning	$80,000
2022, 2023	Ford Mustang Mach-E	$55,000
2022, 2023	Lincoln Aviator Grand Touring	$80,000
2022, 2023	Lincoln Corsair Grand Touring	$55,000

Model Year	Vehicle Description	Applicable MSRP Limit
2022, 2023	Chevrolet Bolt	$55,000
2022, 2023	Chevrolet Bolt EUV	$55,000
2022, 2023	Cadillac Lyriq	$55,000

This manufacturer has entered into a written agreement with us to become a “qualified manufacturer” but hasn’t yet submitted a list of specific makes and models that are eligible. Please check back here for updated information.

This manufacturer has entered into a written agreement with us to become a “qualified manufacturer” but hasn’t yet submitted a list of specific makes and models that are eligible. Please check back here for updated information.

This manufacturer has entered into a written agreement with us to become a “qualified manufacturer” but hasn’t yet submitted a list of specific makes and models that are eligible. Please check back here for updated information.

This manufacturer has entered into a written agreement with us to become a “qualified manufacturer” but hasn’t yet submitted a list of specific makes and models that are eligible. Please check back here for updated information.

This manufacturer has entered into a written agreement with us to become a “qualified manufacturer” but hasn’t yet submitted a list of specific makes and models that are eligible. Please check back here for updated information.

This manufacturer has entered into a written agreement with us to become a “qualified manufacturer” but hasn’t yet submitted a list of specific makes and models that are eligible. Please check back here for updated information.

Model Year	Vehicle Description	Applicable MSRP Limit
2021, 2022, 2023	Nissan Leaf S	$55,000
2021, 2022	Nissan Leaf S Plus	$55,000
2021, 2022	NIssan Leaf SL Plus	$55,000
2021, 2022	Nissan Leaf SV	$55,000
2021, 2022, 2023	Nissan Leaf SV Plus	$55,000

This manufacturer has entered into a written agreement with us to become a “qualified manufacturer” but hasn’t yet submitted a list of specific makes and models that are eligible. Please check back here for updated information.

This manufacturer has entered into a written agreement with us to become a “qualified manufacturer” but hasn’t yet submitted a list of specific makes and models that are eligible. Please check back here for updated information.

This manufacturer has entered into a written agreement with us to become a “qualified manufacturer” but hasn’t yet submitted a list of specific makes and models that are eligible. Please check back here for updated information.

Model Year	Vehicle Description	Applicable MSRP Limit
2022, 2023	Rivian R1S	$80,000
2022, 2023	Rivian R1T	$80,000

Model Year	Vehicle Description	Applicable MSRP Limit
2022, 2023	Chrysler Pacifica PHEV	$80,000
2022, 2023	Jeep Wrangler 4xe	$80,000
2022, 2023	Jeep Grand Cherokee 4xe	$80,000

This manufacturer has entered into a written agreement with us to become a “qualified manufacturer” but hasn’t yet submitted a list of specific makes and models that are eligible. Please check back here for updated information.

 

Model Year	Vehicle Description	Applicable MSRP Limit
2022, 2023	Tesla Model 3 Rear Wheel Drive	$55,000
2022, 2023	Tesla Model 3 Long Range	$55,000
2022, 2023	Tesla Model Y All-Wheel Drive – 7 seat variant (3-rows)	$80,000
2022, 2023	Tesla Model Y Long Range – 7 seat variant (3-rows)	$80,000
2022, 2023	Tesla Model Y Performance – 7 seat variant (3-rows)	$80,000
2022, 2023	Tesla Model Y All-Wheel Drive – 5 seat variant (2-rows)	$55,000
2022, 2023	Tesla Model Y Long Range – 5 seat variant (2-rows)	$55,000
2022, 2023	Tesla Model Y Performance – 5 seat variant (2-rows)	$55,000

This manufacturer has entered into a written agreement with us to become a “qualified manufacturer” but hasn’t yet submitted a list of specific makes and models that are eligible. Please check back here for updated information.

 

Model Year	Vehicle Description	Applicable MSRP Limit
2023	Volkswagen ID.4	$55,000
2023	Volkswagen ID.4 Pro	$55,000
2023	Volkswagen ID.4 Pro S	$55,000
2023	Volkswagen ID.4 S	$55,000
2023	Volkswagen ID.4 AWD Pro	$80,000
2023	Volkswagen ID.4 AWD Pro S	$80,000

Volvo Car North America, LLC
Manufacturers and Models for New Qualified Clean Vehicles Purchased in 2023 or After – Qualified Vehicles

To qualify, a vehicle must:

The sale qualifies only if:

• You buy the vehicle new
• The seller reports required information to you at the time of sale and to the IRS.
  • Sellers are required to report your name and taxpayer identification number to the IRS for you to be eligible to claim the credit.

In addition, the vehicle’s manufacturer suggested retail price (MSRP) can’t exceed:

• $80,000 for vans, sport utility vehicles and pickup trucks
• $55,000 for other vehicles

MSRP is the retail price of the automobile suggested by the manufacturer, including options, accessories and trim but excluding destination fees. It isn’t necessarily the price you pay.

To confirm whether a vehicle is a van, sport utility vehicle, pickup truck or other, see our qualified vehicles and manufacturers.

You can find your vehicle’s weight, battery capacity, final assembly location (listed as “final assembly point”) and VIN on the vehicle’s window sticker.

To check online if a specific vehicle meets the requirements for final assembly location, go to the Department of Energy’s page on Electric Vehicles with Final Assembly in North America and use the VIN Decoder tool under “Specific Assembly Location Based on VIN.”

How to Claim the Credit

To claim the credit, file Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified Two-Wheeled Plug-in Electric Vehicles) with your tax return. You will need to provide your vehicle’s VIN.

Related

Originally Appeared Here

LANSING — A boom in state revenues is likely to trigger a reduction in the state income tax rate for the 2023 tax year, from 4.25% to 4.05%, the House Fiscal Agency said in a report released Thursday.

The income tax reduction, which if enacted would cost the state general fund something in the range of $660 million per year, would be triggered by a 2015 law designed to reduce the income tax rate when state general fund revenues exceed certain levels.

The report said that House fiscal experts can’t make the call with certainty until final numbers are in for the 2022 fiscal year.

However, “based on preliminary FY 2021-22 general fund revenue, the trigger would take effect and lower the income tax rate for TY (tax year) 2023 to 4.05%,” the report said.

More:Michigan tax revenues remain strong, but economists say that will soon change

More:New House speaker Joe Tate: Don’t mistake Detroit Dem’s kindness for weakness, allies say

Gov. Gretchen Whitmer, asked about the report at a Thursday news conference held to highlight Democratic tax cut and tax credit plans that neither include, nor budget for, an across-the-board cut in the state income tax rate, said the projection is “premature,” because the state has not yet closed its financial books on the 2022 fiscal year.

Asked if Democrats would try to amend the 2015 law if such an action was necessary to prevent a cut in the income tax rate, Whitmer said: “I’m not going to speculate on what may or may not happen.”

The House Fiscal Agency report was prepared for a state revenue estimating conference that is to be held at the Capitol Friday. At that conference, the treasurer, the state budget director and other officials try to reach a consensus on how much tax revenue the state can expect to collect over the next three years.

Higher-than-forecast state revenues have resulted in roughly a $7 billion surplus in combined general fund and School Aid Fund revenues, even after significant spending on economic development incentives and other projects.

But news of the likely trigger comes as many economists are warning of a recession.

The last revenue estimating conference was held in May. Based on numbers presented then, a 0.2-point reduction in the state income tax rate could cost the state about $660 million a year. That number could change somewhat, based on updated revenue estimates reached at Friday’s meeting.

Republican lawmakers have been pushing for an across-the-board cut in the income tax rate, but Democratic Gov. Gretchen Whitmer has vetoed such bills, instead calling for an increase in the Earned Income Tax Credit, which helps low-income working families, and a reversal of increased taxes on pensions introduced under former Gov. Rick Snyder. Those ideas are incorporated into bills Whitmer highlighted at a Capitol press conference with House Speaker Joe Tate, D-Detroit, and Senate Majority Leader Winnie Brinks, D-Grand Rapids, on Thursday.

Bills introduced in the House and Senate would, separately, restore the state EITC to 20% of the federal credit, and gradually increase it to 30% of the federal credit.

In the 2019 tax year, about 738,380 Michigan families received an average credit of $150, putting more than $110 million back into the local economy. Restoring the credit to 20% of the federal credit would bring Michigan up to speed with other states, the Michigan League for Public Policy said in a news release. Increasing Michigan’s EITC to 30% of the federal credit would mean an average credit of $749 for these families, the league said.

Whitmer has said the proposed changes in pension taxes would save about 500,000 Michigan seniors an average of about $1,000 a year each.

Both groups “had the rug pulled out from under them” by the previous administration and high inflation currently makes it more important than ever “to do right by the people of Michigan,” Whitmer said.

State Republicans, meanwhile, have also introduced a bill to increase the EITC to 20% of the federal tax credit and another that would give tax relief to seniors more broadly.

“(All retirees) need this relief during times of inflation and the rise in the cost of living, and therefore, we’re proposing broad relief for all Michigan seniors,” House Minority Leader Matt Hall, R-Richland Township, said at a Wednesday news conference.

Staff writer Dave Boucher contributed to this report.

Contact Paul Egan: 517-372-8660 or pegan@freepress.com. Follow him on Twitter @paulegan4.

Originally Appeared Here