LANSING, Mich. (Michigan News Source) – The legislature barely managed to pass the House Bill 4001 which pertained to matters of individual and retirement taxes causing great commotion following its passage.
By a margin of three votes, the bill passed 56 yes votes to 53 nay votes, including a Republican vote in favor, Representative Mike Mueller (R-Linden) and a Democrat vote against, Dylan Wegela (D-Garden City).
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Rep. Wegela opposed the bill largely because of the millions of tax dollars that would pour into the state’s Strategic Outreach and Attraction Reserve (SOAR) fund for attracting businesses.
“There is some value in standing up for what you believe in,” Wegela said. “… I think you’ll see me vote with my caucus probably over 90% of the time. SOAR is just not something that I get behind.”
The bill which also passed in the Senate by a slim margin, 20 yes votes to 18 no votes, has sweeping financial effects in the state. The Earned Income Tax Credit would increase from 6% to 30%, and issue roughly $800 million in $180 checks to each tax filer. However, married couples who file their taxes jointly would get $90 per person.
What will likely become the third Public Act of the new session also never saw a conference to consider the bill more in-depth or possibly amend it, but did spend some time in the conference committee before the house took up the House Concurred Bill.
One of the main Republican gripes with the bill was that it would circumvent the automatic income tax rollback which had been the main priority of the party in the new session. Several members including Republican Floor Leader Bryan Posthumus, Assistant Republican Leader Andrew Beeler, and Assistant Republican Floor Leader Andrew Fink weighed in after being denied the chance to speak against the bill.
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“The Democratic majority is doing whatever they can to pass a tax hike onto families and small businesses throughout Michigan. This bill was written in secret, efforts were made behind the scenes to strong-arm members, and Republicans weren’t allowed to stand up for Michigan taxpayers and speak against this — violating our right to debate,” the Representatives said in a statement, “Democrats did all of this to prevent a permanent income tax rollback that would help make life more affordable for all Michiganders. This is exactly why people across our state don’t trust what is going on in Lansing. Even one House Democrat called this ‘political suicide’ — and that’s exactly what this secret tax hike is.”
One of the 46 Democrat co-sponsors for the bill, Representative Wegela, was also the only Democrat to oppose the bill’s passing.
Despite numerous protests by Republicans to have the right to speak in protest of the bill, Speaker Pro Tempore, Laurie Pohutsky (D-Livonia), denied them the right. Court journals indicate that 14 Representatives submitted reasons as to their vote against the bills passing.
“The Democrats have changed significant portions of a tax bill that I had previously voted in favor of last term by changing it from a tax relief bill to a bill that essentially raises new taxes,” Representative Curt VanderWall (R-Ludington) said, “I’m voting no this time because it puts pressure on families at a time when they need as much relief as possible.”
Representative Kathy Schmaltz (R-Jackson) also cited not wanting to raise new taxes as part of her decision not to vote in favor of the bill.
“After supporting the retirement tax cut in the initial version of HB 4001, I am now voting against the legislation in its current form. With the drastic changes that have been made to it, this bill will force people in my district to continue paying higher income taxes at a time when they just simply cannot afford it,” Rep. Schmaltz said, “I am a strong supporter of tax relief for Michigan retirees and working families, but I simply cannot support an income tax hike for all Michigan taxpayers. Michigan residents and small businesses deserve an income tax cut.”
Speaker Pro Tempore did not allow for any debate on the legislation that would prevent the permanent income tax cut that Republicans had been lobbying for, and adjourned the house until Feb. 14 at 1:30 p.m.
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