Michigan Senate passes income tax cut. Its path forward is unclear.
LANSING — Michigan Senate Republicans on Tuesday approved a $2 billion dollar tax cut proposal that would lower both personal and corporate income tax rates and provide tax relief for senior citizens and children.
The vote was split 22-16 along party lines.
The Republican proposal, Senate Bill 768, would lower the state income tax rates to 3.9 percent from 4.25 percent for individuals and 6 percent for corporations. The plan would also offer a $500 tax credit per child under the age of 19.
GOP lawmakers argued the plan would bring tax relief for all Michigan families as the state continues to recover from the economic impact of the COVID-19 pandemic.
All Senate Democrats opposed the measure, arguing it would further shift tax burdens from corporations onto regular taxpayers. The income-tax savings for an individual making $70,000 would amount to $228 per year if the plan passes.
Read more: https://www.bridgemi.com/michigan-government/michigan-senate-passes-income-tax-cut-its-path-forward-unclear