Most Active Stories
Wed January 29, 2014
Income Tax Reduction Clears Committee, Goes To Full State Senate
Plans to reduce Michigan’s income tax rate are moving forward in the state Legislature.
A state Senate panel approved a bill Wednesday that would phase in the tax cut over three years.
We have more from The Michigan Public Radio Network’s Jake Neher.
The income tax rate would go from 4¼% to 3.9% by 2017. The legislation was introduced months ago, but it has been gaining support since state officials announced a large budget surplus.
Scott Hagerstrom is with the anti-tax group Americans for Prosperity of Michigan.
“This is a tax on work,” he says. “You want more of something? Tax it less. We want more work and more productivity.”
The non-partisan state Senate Fiscal Agency says reducing the income tax to 3-point-nine percent could cost the state almost $900 million a year when it’s fully implemented. Opponents of the proposals say that money should go to cash-strapped public schools and local governments.
The bill now goes to the full state Senate.