Residents in Michigan will likely get a $500 gas tax rebate to help working families manage the rising cost of gas, food and other expenses. Gov. Gretchen Whitmer has proposed the cash boost, dubbed the MI Tax Rebate Right Now, to the state's legislative leaders.
In her official letter to the state speaker and democratic officials, Whitmer underscored how much she wants Michigan families to take advantage of the state's additional revenue by putting "money in the people's pockets" and delivering financial relief.
Her planned MI Tax Rebate Right Now will be based on a budget proposal she filed early this year involving the retirement tax for senior residents. She said that this plan allowed $1,000 back to working families.
The governor said that she's confident she can negotiate with various officials in making the MI Tax Rebate Right Now a reality.
"Both Lieutenant Governor Garlin Gilchrist and I are ready to keep working with you to invest in our shared priorities and get things done," Whitmer said.
Because of Michiganders' hard work and our responsible fiscal management, we are expected to have additional revenue next year. So I'm proposing the MI Tax Rebate Right Now plan to send a $500 rebate to working families right away as we face rising prices on everyday expenses. pic.twitter.com/R0VxKrRxxR
— Governor Gretchen Whitmer (@GovWhitmer) May 19, 2022
Democrats, Republicans Can't Agree to Whitmer's Proposal
Democrats have received Whitmer's proposal with enthusiasm. Democratic Rep. Joe Tate believes that this immediate relief will be the best way to help Michigan residents.
However, Republican leaders in both the House and the Senate, want the budget surplus directed to the ongoing tax cuts instead of a relief package for struggling families. According to Detroit News, some have accused the governor of pandering with her proposal. They described her plan as "very weak" and serves only as a "one-time gimmick" as it did not yet include the specifics on what defines the "working family" and how the $500 gas tax rebate will be rolled out.
But Sen. Curtis Hertel, another Democrat, said that the Republicans refuse to help the working class because they want to lower the state's personal income tax to four percent. If this is approved, taxpayers, regardless of their income bracket, may claim a $600 nonrefundable tax credit per child, as well as a property tax credit for the veterans.
Whitmer also called out the Republicans for their choice to use the budget surplus without regard for investing in its people. Republican Sen. Ken Horn, on the other hand, said he will support the $500 gas tax rebate if the governor supports the Republican proposals.
"If the governor wants to give away $500 cash immediately, fine and dandy," Horn said. "But this goes hand in hand with our plan, as well."
Gas Tax Rebates Status in the Other States
Meanwhile, some states are hitting roadblocks in their proposed gas tax rebates. In California, Gov. Gavin Newsom's $400 gas tax rebate proposal, which was introduced in March, will likely not be ready by July as he planned. According to CBS8, its rollout might be pushed back to September or October due to "practical realities" that the lawmakers need to be clarified.
In Virginia, the Senate voted against the gas relief proposal of Gov. Glenn Youngkin. But both the Republicans and the Democrats agree they have to work something out to give the locals financial relief by the summer.
New Mexico, on the other hand, has rolled out the first of its $250 gas tax rebates. At least 200,000 residents should expect this cash boost in the coming weeks until the summer.
