The Michigan Senate has approved legislation from state Senator Aric Nesbitt to implement a $2.5 billion tax cut. Nesbitt’s proposal would reduce personal and business income tax rates and give families a $500 per child tax credit. He says the state is looking at a huge surplus in its budget this year, and rather than spending the money, it should give those dollars back to the people. Nesbitt’s tax cut would slash the state’s personal income tax back to 3.9% and create a $500 tax credit for each child under the age of 19. The business income tax would be lowered to 3.9% from 6%, and the bill would also increase the tax exemption for all retirement income to $30,000 for individuals and $60,000 for couples. The state Senate approved the plan Tuesday.
