Michigan Rep Wants to Phase Out State’s Income Tax

 

Michigan’s state income tax was raised in 2007 in what was supposed to be a temporary fix, but it ended up being permanent. More than a decade later, one Republican state lawmaker plans to change that.

State Rep. Rodney Wakeman (R-Saginaw Township) introduced a bill Wednesday that he says would “allow Michigan families to keep more of their hard-earned money through long-overdue income tax relief.”

Under his proposal, the state income tax rate would be reduced from 4.25 percent to 3.9 percent in 2021. An additional 0.1 percent would be phased out each year beginning in 2022 until its completely eliminated. At that rate, however, it would be 39 years before the tax is eliminated in its entirety.

Former Gov. Jennifer Granholm and state lawmakers agreed to temporarily increase the state income tax rate from 3.9 percent to 4.35 percent in 2007 as part of a legislative deal to avoid a government shutdown. According to Wakeman, the pledge at the time was to decrease the tax rate back to 3.9 percent by 2015, but it never happened. The income tax rate did see a reduction in 2012 to 4.25 percent, which is where it remains today.

“Whether it’s a phone call, letter, at monthly office hours or at a community event, one of the top requests I’ve heard from Saginaw County families since coming to Lansing is to deliver tax relief,” Wakeman said in a statement. “This is about restoring people’s trust in government by making good on a promise made to Michigan taxpayers over 10 years ago. For too long, tax spenders have gotten their way. Now it’s time to give hard-working families a break by delivering long-overdue tax relief.”

He said he expects his bill to be referred to the House Tax Policy Committee for consideration in the coming days.

– – –

Anthony Gockowski is managing editor of The Minnesota Sun and The Ohio Star. Follow Anthony on Twitter. Email tips to [email protected].

 

 

 

 

 

Related posts

Comments