Governor Rick Snyder says it’s too early to be talking about tax cuts as the state appears to be enjoying a revenue windfall.
A state board meets Friday to decide the size of that budget surplus.
The Michigan Public Radio Network’s Rick Pluta reports.
Governor Snyder, a retired businessman and CPA, has been a champion of paying down debt and socking money away in savings. The state did reduce business taxes during his first year in office, while ending the tax exemption on pension income.
The governor says Michigan’s economy is improving, but lawmakers should not be too quick to divert any revenue windfall to tax rollbacks.
“We don’t even have the revenue forecast yet,” he says. “What I would say, though, and I think it’s very clear if you look, we’ve come a long way back. We’ve improved dramatically in our economy, but we need to be smart about making decisions.”
But many lawmakers – facing election campaigns this year -- are already lining up behind ideas for tax cuts, including a rollback in the income tax rate.