Elimination of Michigan’s State Income Tax?
This came out of nowhere, did you know that some Republicans in the State House and Senate are looking to eventually bring down our State Income Tax to zero?
I did not.
Apparently the first bill introduced in the State House this year, HB 4001, is looking to first reduce our State Income tax from 4.25% to 3.9%, which was the entire increase last time they increased our state income tax, in January 2018. The bill then looks to reduce out state income tax by .1% per year until the tax is eliminated.
The bill was sponsored and introduced by State Representative Lee Chatfield, R-Levering, and it was endorsed by the new Speaker of the House Tom Leonard, R-DeWitt. Representative Chatfield said it was “The right thing to do for Michigan families.”
We also found out that State Senator Jack Brandenburg, R-Harrison Township that he plans to introduce a bill next week in the Senate that would reduce the income tax to zero over the next five years.
Interesting and I wonder how far that will get in both the House and Senate.
We already know that the new House Minority Leader Sam Singh, D-East Lansing, believes that it will be very difficult to comprehend how the House could cut more than $9 billion out of the state budget. The $9 billion was how much that state income tax brought into Michigan’s treasury last year.
I have to say that I agree with the new House Minority Leader Sam Singh. Until we find out how they can reduce the tax to eventually zero and still provide the services that we as Michiganders believe is the responsibility of the state, I will hold me thoughts on it. Now I understand that Democrats and Republicans disagree on what those responsibilities are but cutting out that much will harm what both parties believe to some extent is the responsibility of the state.
That does not mean it cannot be done but I as well as you should first see what their plans are before making a definitive decision on this.
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