NewsRoom
6:26 pm
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.