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Thu June 14, 2012
House OKs Income Tax Rate to 3.9% by 2018
The Michigan House has approved legislation that would drop the state's income tax rate to 3.9% by 2018.
The bill passed Thursday by a 97-13 vote would drop to 4.2% on Jan. 1 and go down each year. The annual fiscal year revenue loss is estimated to be about $800 million in six years.
Lawmakers recently passed legislation cutting the current income tax rate from 4.35% to 4.25% on Oct. 1, three months earlier than scheduled. That will save average taxpayers about $10 per person.
The measure moves on to the Senate.
Changes approved last year by Republican Gov. Rick Snyder and the GOP-led Legislature mean individual income taxpayers will pay $1.4 billion more next year based on 2012 income while businesses pay $1.7 billion less.