The state House has approved an election year tax reduction. The measures now head to the state Senate.Last year, the Legislature delayed an income tax rollback. That helped balance the budget and pay for eliminating the Michigan Business Tax. This year, the Legislature wants to move up a reduction in the tax rate and increase the personal exemption.
Republican Representative Jud Gilbert chairs the House Tax Policy Committee. He says it’s time for individual taxpayers to benefit from the state’s economic recovery.
"I kind of take exception to the idea that this is somehow political pandering, election year politics,” he says.
Democrats say that’s exactly what this tax cut is. And they say it’s paltry compared to the loss of a dozen deductions and exemptions last year that shifted more of the tax burden to low- and middle-income families.
But that did not stop Democrats from voting in overwhelmingly numbers for the rollback.