Budget Chief: Expect Some Type Of Tax Rollback

Jan 10, 2014

A state budget panel confirmed Friday that Michigan’s improving economy is generating a revenue windfall.

As The Michigan Public Radio Network’s Rick Pluta reports, there’s growing support to return some of that directly to taxpayers.

Much of the revenue surplus is one-time money that’s won’t necessarily last into the future, so Governor Rick Snyder is among those cautioning the state shouldn’t use it to make big, long-term commitments. But John Nixon, the governor’s budget director, says the administration is looking for ways to give some of the money back to taxpayers.

 “Obviously, whenever you have this much revenue, a tax cut or tax relief is inevitable and it makes sense,” he says.  “It makes a lot of sense.”

Nixon says that does not have to be an income tax rate cut. It could be an exemption or a rebate. And, he says, some of the surplus should also be used to invest in schools, higher education, and infrastructure needs that were ignored during the recession.