LANSING – Michigan House Speaker Jase Bolger and his colleagues said on Thursday tax relief for working residents who helped add to the state’s surplus monies is a key addition to the caucus’s action plan in the 2014 legislative session.

Bolger (R-Marshall) said during a news conference at the Capitol that along with tax relief, the caucus is adding to its agenda an exemption to gun owner’s information from the Freedom of Information Act, bills combatting human trafficking and improving school safety.

Bolger boasted on the accomplishments of 2013, saying Medicaid reform, the change in the Court of Claims, updating campaign finance and reforming indigent defense were all changes that were talked about for many years, but never accomplished until this past year.

“Still, too many people are looking for more or better careers,” Bolger said. “And too many families remain in other states having moved looking for work. We can’t be done because the job is not done. Every woman, man and child in Michigan deserves a brighter future, a safe community and a successful career when they work hard and play by the rules.”

Bolger said there is still a lot of debate to be had about the form the tax relief he would like to see will take. He said he is excited to have this debate with House Democrats, the Senate and Governor Rick Snyder’s office.

However, he said the tax on pensions enacted in 2011 is not going away. He said it provides a more fair structure, if some income is going to be taxed, it all should be taxed, he said.

“I think it is going to take a form that provides relief to our working families,” Bolger said. “I think it will be targeted, focused toward individuals and it will reward those who work hard to pay the bill that resulted in the surplus.”

Bolger also said he would like to see it as an ongoing form of tax relief, and it could take the form of a combination of different things, depending on negotiations.

However, Bolger said he looks at the Earned Income Tax Credit, something the Democrats support increasing, as “a check that is written to people instead of refunding money that is paid.”

“I think it’s exciting that that is the debate that we get to have,” Bolger said. “And I think if we stay focused on the working men and women who paid that bill, who pay for our state government, I think that’s the standard I want to meet. Within that there are a lot of different options.”

House Minority Leader Tim Greimel (D-Auburn Hills) said “It’s great the Republicans are coming around to our way of thinking.” But, Greimel said the Republicans should repeal the tax increases imposed on middle class families and seniors in the state.

Greimel said that would include increasing the EITC and repealing the pension tax. In 2011, while slashing business taxes, Snyder and legislative Republicans reduced the state EITC from 20 percent of a filer’s federal EITC to 6 percent, extended the income tax to pension income earned from public sector jobs for the first time and greatly reduced the exemption on pension income from private sector jobs as well as wipe out a slew of popular tax credits.

“If the speaker were sincere about providing tax relief to the people who created the budget, he would join us in calling for a full repeal of all the taxes imposed on seniors and low to moderate income families,” Greimel said.

Rep. Kevin Cotter (R-Mount Pleasant), who chaired the work group that came up with the action plan, said he has not yet decided what kind of tax relief he would like to see. But he said he would like it to be responsible, ensuring it can be paid for in the future.

TRANSPORTATION: Cotter also said he would like to see some of the surplus funds to go toward infrastructure, as a way to protect investment before a permanent plan is agreed upon in the Legislature.

“It is a one-time fix. It is not ongoing. It is very important that we get ongoing money,” Mr. Cotter said. “A year ago the governor at the State of the State put forth his plan for the $1.2 billion, the $1.2 billion over 10 years, and we have to make changes to provide for this money to be ongoing so we don’t just delay the problem. But because we haven’t gotten it done yet at this point, we haven’t gotten to that solution that enough people can rally around I think that part of the surplus money could be used as a stop-gap measure to carry us over to the point until which we have this ongoing plan put together.”

Bolger said as the state continues to see growth, it is likely more resources will become available for infrastructure. He said in the meantime it’s important the Legislature prioritize the existing budget.

“I am having weekly meetings at this point with Chairman (Rep. Wayne Schmidt), Minority Vice Chair (Rep. Marilyn Lane) and Minority Leader (Tim Greimel),” he said. “And we’re going to continue to work on a variety of things. And that includes making our road system more efficient and more effective, as well as potentially updating the tax structure within our road system. I do not expect we will see something this year that is a net increase to the state from our existing activity.”

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