An income tax cut is possible in Michigan this year due to a revenue surplus of around $9.2 billion. The rate would automatically drop from 4.25% to 4.05% if the general fund grows faster than the rate of inflation due to a 2015 road funding bill signed by former Governor Rick Snyder. Senate Minority Leader Aric Nesbitt of Van Buren County is urging majority Democrats to keep the cut in place. Nesbitt says he wants to return as much money as possible from the surplus to taxpayers. Democrats are in the majority in both the House and Senate and have the governor’s office as well for the first time in nearly 40 years. Democrats have introduced plans for tax cuts, and Governor Whitmer wants the pension tax in place for senior citizens repealed.
