Michigan house Republicans take tax cut stance

Jan 14, 2017

Michigan GOP legislators poise to create major tax reduction for Great Lakes State residents. Tax cut push comes as budget projected to tighten.

LANSING, Mich. (AP) — After commanding the legislative agenda for six years, Republicans say now is the time to finally enact a major tax cut for Michigan residents.

But those pushing to gradually repeal the 4.25 percent personal income tax will confront some stark realities — namely, future budget pressures created by the Legislature itself.

As part of a road-funding plan, legislators approved a sweetened tax credit for some homeowners and renters. And to limit the size of fuel and vehicle registration tax hikes, they voted to permanently shift money spent on other services to road repairs.

The phase-out of what was seen as an onerous tax on manufacturing machinery starts having a more significant effect on the budget this year. And the state must begin paying some of the cost of expanding Medicaid.