'Inflation relief' checks: Gov. Whitmer to unveil plan that would send rebate checks to taxpayers

(FOX 2) - The Michigan governor wants to send inflation relief checks to residents as part of the Democrats' new tax cut plan. She will reveal the dollar amount the governor wants in the rebate checks Monday.

Details about the plan were discussed during a 9:15 a.m. press conference. Read about the details for the new proposal here. 

The checks would be sent to every taxpayer in the state. The idea spawned from a back-and-forth between Republicans and Democrats over how to spend the state's massive budget surplus it's sitting on coming out of the pandemic. 

Democrats had already pushed for other tax relief, like boosting the earned income tax credit for low income residents and cutting the estate tax on Michigan retirees. Both plans have already been introduced in the state House and Senate.

But Republicans have pushed for more. They want Michigan to lower the state income tax rate, dropping it from 4.25% to 4.05%.

Michigan could afford it, since it has billions of dollars in extra cash. But the lowered rate would siphon about $600 million from the state budget - which Democrats fret could come back to bite the state in five or six years when the surplus dries up.

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A lower income tax rate would amount to savings - but wouldn't be realized until someone gets their taxes and sees how much less money went to the state. The rebate check would be money sent to residents.