Income tax rate cut is a good idea and it’s fair
Michigan taxpayers are one step closer to receiving the tax break they both desperately need and, frankly, deserve. On Wednesday the State House Tax Policy Committee approved bills that would lower the state’s income tax rate from 4.25 percent to 4.05 percent by 2016. Additionally, the committee approved a measure that would lower the tax rate another tenth of a percentage point in future years if the tax revenue increases by a minimum amount.
Shortly after Gov. Rick Snyder took office, one of the ways the legislature dealt with Michigan’s economic problems was through taxation measures. Controversial as it was, it worked and for the first time in more than a decade the state has a budget surplus.
We feel it is time to, cautiously, start giving some of that money back. The governor has already announced funding increases for both K-12 and higher education.
Now its time to give a little something back to the state’s taxpayers.
While there are currently four separate tax relief proposals pending in the House or Senate, there is no broad deal.
The governor has proposed partially restoring a tax break for homeowners and renters that he helped scale back in 2011.
While we support that move, we feel an across the board cut in the state’s income tax rate would provide the biggest and fairest benefit.
It was Michigan’s tax payers who helped shoulder the burden during the recovery and it is those taxpayers who should receive relief now.