Legislative Democrats
called for $1 billion in tax credits and deductions for Michigan families on
Monday. Named “Blueprint for Michigan Families,” House Minority Leader Tim
Greimel (D-Auburn Hills) said their plan would help ease the burden on families
that resulted from Governor Snyder’s tax shift.
This plan includes a
new tax credit in the amount of $400 per child under 13 in a household with an
income less than $100,000. It also includes a new dependent care tax credit for
families caring for children or an elderly parent, an expansion of the
Homestead Property Tax Credit limit from $50,000 to $100,000, a senior (age 65
and older) deduction that exempts the first $2,300 in income from taxation, and
a College Affordability Tax Credit of up to 50 percent of the amount paid on
higher education loans for any Michigan employee.
Minority Leader
Greimel says a family with an income less that $100,000 could save up to $1,500
a year with this plan. Democrats plan to finance this project through renegotiating
the Michigan Economic Growth Authority tax credits, which has met resistance
from Republicans. If this renegotiation continues to be a source of conflict,
Democrats would also consider a modest bump in the Corporate Income Tax or
changes in the corporate welfare system to pay for the plan.
House Republicans believe
this is nothing more than a “dog and pony” show, according to a spokesperson
from Speaker Kevin Cotter’s (R-Mount Pleasant) office.
Despite the remarks,
Representative Greimel continues to work out a plan stating that if the
Republicans were to agree on the Democrat’s road funding plan, they might have
to scale back on this new plan. The road-funding plan includes an increase in
the Corporate Income Tax, which Mr. Greimel believes could also offset tax
increases to middle class families.
Conversations
continue, and Democrats are hopeful for a bipartisan solution.