News

Actions

State House revises plan to cut the state income tax, Governor Snyder still has concerns

State House revises plan to cut the state income tax, Governor Snyder still has concerns
Posted at 5:47 AM, Feb 22, 2017
and last updated 2017-02-22 05:49:04-05

Michigan lawmakers could vote today on a plan to lower the state income tax.

Yesterday, House Republican's revised their original plan to drop the tax from 4.25% to 3.9% within the next year and eventually get rid of it altogether.

Instead, they're calling for it to be lowered to 3.9% over the next four years and have dropped their push to have it eliminated.

After reviewing the amended version of House Bill 4001, Governor Rick Snyder released a statement saying, 

    "I appreciate that House leadership took seriously my concerns about the long-term impact of the proposal, but I still have a billion dollars worth of concerns because there has been no plan presented as to how this will affect residents and their communities statewide.

"Half of a billion dollars will come due in 2019 and over one billion by 2022, years in which we have planned funding specifically to invest in modernizing our state's infrastructure. Improving our infrastructure shouldn't be postponed, and so I'd like to see a public plan as to how this will be paid for before I can lend my support to the new proposal."

 

The non-partisan House Fiscal Agency says the tax cut will save Michigan taxpayers $680 Million this year.