Bill To Reduce MI Income Tax Moving Forward In State House

From the Associated Press — A Republican-led House panel has voted to cut Michigan’s income tax and eliminate it over a number of decades despite “serious concerns” lodged by Governor Rick Snyder. Supporters say the bill approved 7-4 Wednesday would fulfill a nearly
decade-old promise to reduce the 4.25% tax to 3.9% after it was raised to balance the budget. Opponents say the tax cut would cost the state
$680 million next budget year and $1.1 billion in the first full year at a time general funds are tightening. State Treasurer Nick Khouri, citing “serious concerns” with the bill, said business and other taxes have dropped $2.8 billion since the Republican governor took office. However, House Republicans countered average residents have not seen much relief and a tax cut would spur economic growth.