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Wed May 23, 2012
Income Tax Rollback Grows More Likely
It appears a budget deal between Governor Rick Snyder and the Legislature’s Republican leaders could include an election year tax cut.
An early version of the proposal would accelerate a drop in the state income tax rate and increase the personal exemption.
The governor and GOP leaders have been meeting to put the finishing touches to a budget deal with an eye toward wrapping up their work by the end of next week.
Governor Snyder says he was skeptical at first, but he says revenue projections look promising enough to at least start talking about a tax cut for individuals and families.
“The way I view it is I’m a taxpayer, too, and if I could get a little more relief, I’d be happier about it,” he says.
Snyder says his support for an income tax rollback hinges on the state first paying down a big chunk of its debt and putting more money into its “rainy day” savings.
Democrats say the talk of an income tax cut is an election year conversion for Republicans. They say GOP tax reductions for businesses have forced families to pick up more of the tax burden. They schools and universities have also suffered from the changes.