GRAND REPIDS, MICHIGAN (DRES) – Is Michigan Taxpayer Expected? If you listen to the governor and the legislators, it seems that there is freedom – but with all the things in the budget it is not as easy as it may seem.
Gov. Gothen Whitmer, a Democrat, spoke of tax breaks in it State address in January. The Republican-led Senate then passed a bill that cuts taxes. Now controlled by Republicans House follows suit. They all talk about tax cuts, but not necessarily the same.
Politicians always like to talk about tax cuts, and I especially like it in election year.
“I’m willing to work through the aisle to abolish the pension tax and save 500,000 families in Michigan an average of a thousand bucks a year,” Whitmer said during her state. “Now let’s talk about tax cuts for people who work full time but still can’t get ahead.”
In response to record revenues and possibly $ 7 billion more than expected, Whitmer included in its budget proposal abolition of the pension tax and increase of the income tax credit to $ 3,000 for low-income families.
The state senate is focusing on the income tax, moving towards its reduction from 4.25% to 3.9%, and wants to reduce the business tax from 6% to 3.9%. The Senate plan also increases the pension income tax exemption to $ 30,000 for individuals and $ 60,000 for couples.
The Chamber agreed that the income tax should be abolished. The lower house will also provide tax breaks for all retirees over the age of 62 at a slightly lower rate than in the Senate. The House of Representatives plan also provides more than $ 1 billion to help support state pension accounts, which are currently underfunded.
But or all of this, the Senate, House of Representatives and governor disagreed on the final strategy of tax cuts.
MP Thomas Albert, R-Lowell, who chairs the House Appropriations Committee, was asked if this was the start of negotiations.
“Absolutely,” he said. “I think now all three sides have a share in the land, and it’s good that we’re all on the same field. So we’re all talking about the same thing, so I think it’s very encouraging. ”
The same platform, maybe, but on different benches.
The three-party debate will be part of a budget negotiation that many in Lansing want to end early to allow agitation this summer. But given this legislature and the governor’s reputation for budgets, this may be optimistic.