Lansing, MI – For the past four years, Governor Whitmer and Lt. Governor Gilchrist have worked with lawmakers on both sides of the aisle to make progress on the kitchen-table issues that matter most to Michiganders. At a time of inflation, lowering costs and getting targeted relief to Michiganders is a top priority. The Whitmer-Gilchrist Administration remains committed to growing Michigan’s economy, creating good-paying jobs, and building a brighter future for Michiganders across the state. 

Key Coverage 

MLive: EITC boost, retirement tax repeal: Whitmer eyes priorities for first few months of 2023 

Expanding the Earned Income Tax Credit and repealing taxes on retirees’ pensions might end up being two of the first things tackled in the first six months of 2023, if Gov. Gretchen Whitmer has anything to say about it. 

“We are going to have an agenda that, I think, we’re all absolutely dedicated to,” Whitmer said. “And I would imagine, early on, we’ll be able to give the working family tax credit – get that done – as well as the retirement tax repeal. So, that’s just the start. But I do think … the first six months is going to be really important.” 

The “retirement tax,” or a tax on pension income for retired Michiganders, has long been a policy priority of the Whitmer administration, with her calling on the legislature to reinstate tax credits for seniors by 2025. It’s believed the move would save an estimated 500,000 people $1,000 per year when the credits are fully implemented. 

Bridge Michigan: How Gov. Gretchen Whitmer, Democrats plan to cut Michigan taxes in 2023 

Tops on her list: Expanding the Earned Income Tax Credit for low- and middle-income workers, and repealing the so-called pension tax for seniors. 

“None of this happens in a vacuum, but those are a couple things that I think continue to be real priorities for me,” Whitmer told Bridge Michigan last month after winning election to her second term and helping flip the Legislature. 

WOOD: Whitmer eyes tax relief at start of second term 

“We’ll get to work soon as the first of the year happens. We’ve already had conversation with Senate Majority Leader elect-Winnie Brinks (D-Grand Rapids) and Speaker-elect Joe Tate (D-Detroit). We are confident that as we go into next year, we’re going to be aligned in giving people relief, whether it is the pension tax repeal or it is a working family tax credit,” Whitmer said. “These are ways that we can help put more money in people’s pockets at a time when too many are struggling to pay the bills.” 

November’s election put Democrats in control of both the Michigan House of Representatives and Senate for the first time in decades. 

“This incoming majority is eager to be in this position for the first time in 40 years in Michigan and sees that as an opportunity,” Gilchrist said. “…This majority was delivered by the voters because they wanted to see continued progress and in the way we’ve approached leading here in Michigan, which has been focused on problem-solving and being practical and focused on these fundamentals of infrastructure and education.” 

MiBiz: ‘WE’RE PRAGMATISTS’: Whitmer, Gilchrist outline 2023 policy goals 

Gov. Gretchen Whitmer and Lt. Gov. Garlin Gilchrist are gearing up for a second four-year term in Lansing that comes with a new advantage in a Democratic-led Legislature. Both say this opens new possibilities on a range of issues, but they also maintain that they’re “pragmatists” and pledge to work with Republicans. In an interview with MiBiz last week, Whitmer and Gilchrist discussed their priorities on a range of topics, including tax reform, right to work, housing and economic development.  

What are your top policy priorities heading into 2023? 

Whitmer: We’re really excited about the opportunity to continue the work that we got started in the first term. We are working very closely with Speaker-elect Joe Tate and Senate Majority Leader-elect Winnie Brinks. I think some of the first things we want to accomplish is help people keep more money in their pockets. Whether it’s a working family tax credit or repealing the retirement pension tax, these are ways we could help people who are struggling right now with the high cost of everything. 

FOX2: Whitmer discusses cutting costs, economic relief in the next term 

Gov. Gretchen Whitmer: "Well, let me say this first and all: I am so excited about a second term. We are all focused on helping people get ahead. 

"I would anticipate very early on, having some action that will put more money in people's pockets - whether that's repealing the retirement tax or the working family tax credit. These are things that I think we can take quick action on, that will really give people a little breathing room and a little help when they need it most." 

9&10 News: ‘A Michigan Agenda’ Gov. Whitmer Reflects on 2022, Looks Ahead to 2023 

“Whether it’s getting individualized tutors or it’s getting families tax credits so they can keep more money in their pocket or the retirement tax, these are things that we’ve already had conversations with the incoming legislative leaders,” said Gov. Whitmer. 

ABC 12: Gov. Whitmer reflects on her first term, looks ahead to four more years 

Whitmer says she would like to eliminate Michigan's retirement tax. According to the state, eliminating the tax would save half a million households an average of $1,000 a year. 

She also plans to work on other financial relief efforts as Michigan residents tackle high inflation. 

"These are things that we want to get done early so we can put some help people who are working hard or who have worked hard and played by the rules keeps more money in their pocket," said Whitmer.