House GOP: Cut Income Tax Rate To 3.9% By 2018
LANSING (AP) – Some Republican lawmakers are pushing to drop Michigan’s income tax rate to 3.9 percent by 2018.
Under a House bill introduced Thursday, the rate would drop to 4.2 percent on Jan. 1 and go down each year. State revenue would shrink by $1.9 billion over the six years.
Lawmakers just passed legislation cutting the current income tax rate from 4.35 percent to 4.25 percent on Oct. 1, three months earlier than scheduled. That will save average taxpayers about $10 per person.
Changes approved last year by Republican Gov. Rick Snyder and the GOP-led Legislature mean individual income taxpayers will pay $1.4 billion more next year based on 2012 income while businesses pay $1.7 billion less.
Budget director John Nixon said Thursday he’s unaware of the proposal but has other priorities.
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