New tax cut plan emerges in Michigan Senate
Lansing — A new Republican proposal to cut state taxes by raising Michigan’s personal exemption could win bipartisan backing in the Legislature, where Democrats view it as a more equitable form of relief than an income tax rate cut.
State Sen. Jack Brandenburg, R-Harrison Township, on Thursday introduced legislation that would raise the personal exemption to $4,800 by 2021, up from GOP Gov. Rick Snyder’s proposal to raise the exemption in 2021 from $4,300 to $4,500.
Snyder and Lt. Gov. Brian Calley on Monday unveiled their “fix” to restore the state’s personal income tax exemption, which they say was effectively eliminated by the recent federal tax code overhaul. Without action, the administration says the federal change could cost Michigan taxpayers a collective $1.5 billion a year.
Brandenburg’s proposal would also restore the exemption but go beyond the $200 increase proposed by Snyder, which would cost the state about $50 million in revenue but save a family of four about $34 a year.
Read more: http://www.detroitnews.com/story/news/politics/2018/01/11/michigan-budget-economy-comeback/109357478/
