Thursday, February 16, 2017

Bill to roll back MI income tax moves to House

Gentle readers, keep your eyes on HB 4001. The bill just moved from committee to House of Representatives. It would cut the income tax from 4.25% to 3.9% on Jan. 1, 2018, and by 0.1% in every subsequent year until is entirely eliminated 39 years in the future. In its first year of implementation, it would punch a $1.1 billion hole in the State's budget. Keep in mind Michigan's constitution requires a flat income tax. This means the someone earning an average income, $50,000, would save about $150 per year in their state taxes. Higher income earners though would save a great deal more. those earning more than $484,000 would get a tax benefit of $3,700 a year. So despite the fact that the folks who support this bill say it would benefit Michigan families, that's not entirely true. It would benefit benefit Michigan families in the top income brackets a great deal, while doing little for working and middle class families.

There is a faint sliver of hope. Our Governor has voiced his opposition to reducing the State's income tax, so as long as Snyder has is willing to standup to his party members in the House (and possibly Senate) we should be safe. Now might be a time to call Snyder's office and let him know how you feel about potential income tax cuts. His number is 517-335-7858. You can also find contact information for you state Senator and Representative at Michigan Votes.


House panel approves gradual elimination of income tax - Freep
Can the governor rise to the occasion? - Jack Lessenberry
The truth about Michigan's proposed income tax cuts - Jack Lessenberry

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