Michigan Gov. Snyder Unveils Budget to Cut Taxes and Spending
Today, Americans for Tax Reform commended Michigan Governor Rick Snyder (R) for proposing a budget that will simplify and reform the state's tax code, while cutting taxes for Michiganders. Snyder's executive budget would also cut state spending and implement structural reforms to shore up the state's $1.5 billion overspending problem.
Gov. Snyder's proposal would completely eliminate the Michigan Business Tax, replacing it with a 6 percent corporate tax rate. It would also lower the personal income tax from 4.35 to 4.25 percent and simplify the tax code by eliminating most deductions and credits. Over the next two fiscal years, the budget represents a net tax cut of $122 million, in addition to a promise to cut taxes by another $100 million by fiscal year 2013.
Grover Norquist, president of Americans for Tax Reform, made the following statement:
"After a decade of tax hikes, unsustainable spending, high unemployment, and clear favoritism for public employees over the average Michigan resident, Gov. Snyder has released a budget that will put Michigan on back on the path to fiscal responsibility.
"Snyder's plan contains well over a hundred million dollars of net tax cuts for Michiganders and has the added benefit of dramatically simplifying the state's tax code. The tax reform plan will stop the flood of jobs out of the state by relieving Michigan businesses of an onerous tax burden and attracting new employers from around the country.
"Snyder's budget is a 180-degree turn-around plan from a dark, lost decade in Michigan. Though tax simplification and cuts, spending reductions, and serious structural reforms, Gov. Snyder has paved the way to renew the state's economy and make Michigan competitive again."