A Senate committee action this week is being met by mixed reaction from democrats and even fellow republicans.  At issue: whether the state surplus should be returned to residents in the form of a reduction in the income tax rate.

Members of the Senate Finance Committee approved a plan on a 5-2 vote to reduce the state's current 4.25 percent rate back to 3.9 percent.  The reduction would occur over a period of years.  Members say the proposed $1 billion surplus should enable taxpayers to take home more of what they earn.  But while Governor Snyder favors some tax relief, he isn't on board with the income tax reduction.  At least so far.

The governor, who will detail his proposal when he presents his budget, is said to be more favorable of a program that ties the amount of money back to residents to the state of the economy.  In good times, taxpayers would get money but if the economy takes a turn for the worse, they would receive less or nothing.

Democrats appear not to be in favor of either plan.  They say any cuts to the income tax would have no descernible impact on the pocketbooks of residents and do nothing to continue to grow the economy.