LANSING, Mich. (Michigan News Source) – The Michigan House passed legislation this week that would lower the state’s income tax rate.
House Bill 4170 would cut Michigan’s income tax rate from 4.25% to 4.05%. Most Michigan income tax revenue goes to the state’s general fund. If passed, the bill would drop the income tax to the 2023 rate. That’s when revenue triggered a law that temporarily lowered taxes. Michigan courts ruled that cut was only temporary.
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Bill sponsor state Rep. Kathy Schmaltz (R-Jackson) said Michigan families are under a lot of financial strain. “Families need relief now more than ever,” she said in a speech on the House floor. “Every little bit helps.”
State Rep. Bryan Posthumus (R-Rockford) wants policy to go one step farther by examining how other states without income tax make it work. “Our state doesn’t need more revenue, it needs less government,” he said.
Every Republican lawmaker voted in favor of the legislation. Most Democrats opposed the bill, but seven voted for it: state Reps. Kelly Breen (D-Novi), John Fitzgerald (D-Wyoming), Matt Koleszar (D-Plymouth), Denise Mentzer (D-Mt. Clemens), Reggie Miller (D-Van Buren Township), Angela Witwer (D-Delta Township), and Mai Xiong (D-Warren).
Some Democrats who voted against the bill said the drop may cut important services and Michiganders may never notice the difference in their bank accounts.
The legislation now goes to the Democratic-controlled Senate.