Mich. House step closer to passing income tax cut
LANSING, Mich.—The Republican-led Michigan House is set to approve legislation that would move up an income tax cut from January to October and increase how much someone can earn before taxes kick in.
The House on Tuesday passed a second reading of two bills, including one that would drop an individual's tax rate from 4.35 percent to 4.25 percent. The measures likely will come up for final passage Wednesday and then move to the Senate.
House Republican Speaker Jase Bolger wants to return $90 million to taxpayers from a budget surplus. Democrats say it's insufficient because changes passed last year amount to a tax increase totaling hundreds of millions of dollars.
The House Fiscal Agency says the bills would reduce state revenue by about $103 million for the upcoming fiscal year.