LANSING, MI (WKZO AM/FM) – A local state lawmaker who chairs the House Tax Policy Committee is applauding a tax cut plan that he says will provide real tax relief for people across Michigan in the face of skyrocketing costs.
State Representative Matt Hall (R-Marshall Township) says the plan approved by his committee and the House Appropriations Committee includes $1.7 billion in annual tax relief by reducing the income tax rate from 4.25 percent to 3.9 percent for all individual payers.
Hall said the cut follows through on a previous commitment to restore the rate after it had been raised during the Jennifer Granholm administration. Seniors would also receive additional relief. The income exempted from taxes for people 62 and older would rise to $20,000 for individual filers and $40,000 for joint filers.
Pension and debt relief for local government employees totaling $1.5 billion in one-time funding is also included in the plan.
The bills now move to the full House for further consideration.
The Michigan League for Public Policy is criticizing the House plan, with league President and CEO Monique Stanton saying, “Now that everyone’s tax proposals are on the table, the stark contrast is clear. Governor Gretchen Whitmer has proposed targeted tax relief for residents who are struggling the most by increasing the EITC, and historic budget investments in all of the areas kids, residents, businesses and communities rely on. Legislative Republicans are pushing for sweeping, across-the-board tax cuts that primarily benefit the wealthiest residents and businesses while significantly decimating our current and future state budgets in the process.”
Last week, the Michigan Senate passed its own tax cut proposal.
Hall’s 63rd State House District covers south and central Calhoun County and eastern Kalamazoo County.
