Michigan Legislature approves $1 billion in tax cuts; GOP decries fairness

The Michigan Legislature approved proposals Thursday that would provide about $1 billion in tax cuts, advancing top priorities of Gov. Gretchen Whitmer less than four weeks after Democrats took full control of the Legislature.

Senators voted 27-11 to expand the state's Earned Income Tax Credit, which will save low-income workers about $442 million a year on their tax bills. Then, senators voted 23-15 to change how the state taxes retirement income, bringing back an exemption for public pensions and dropping state revenues by about $500 million annually.

Both bills, which still have to go to the state House, aim to undo policies that were signed into law by former Gov. Rick Snyder, a Republican, a decade ago when he and GOP lawmakers overhauled the state's tax system.

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