In Michigan
6:28 pm
Tue October 6, 2009

Mich. House votes to suspend income tax exemption

LANSING, MI – The Democratic-led state House has voted to suspend an inflationary increase in the personal exemption on Michigan's income tax to help avoid deeper spending cuts in state government.

A bill approved Tuesday 58-51 mostly along party lines would save roughly $55 million in the new budget year. The legislation next will be considered by the Republican-controlled Senate.

The personal exemption on the state income tax is supposed to go from $3,500 to $3,600 this tax year. The freeze would cost taxpayers $4.35 for each person claimed as a deduction on their income tax form.