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Fri June 29, 2012
Snyder Signs Income Tax Cut
Governor Rick Snyder has signed a reduction in the state income tax.
Last year, Governor Snyder and the Legislature delayed a reduction in the income tax rate to January 1, 2013. This measure moves it up a little. Now, the rate will drop -- slightly -- to 4.25% on October 1. There will also be an increase in the personal exemption.
Democrats say the tax relief offered is a pittance – about 50 cents a week – compared to the dozen tax breaks for working poor households, homeowners, and seniors on pensions that were eliminated last year as part of a Republican-led tax overhaul. That did not stop most from voting for the rollback.
Republican leaders say the economy – and, therefore, revenue – has improved enough for the state to afford a tax cut. It also happens to coincide with an election year. The two Republican sponsors of the tax rollback come from competitive districts.