Michigan Republicans celebrated the fiscal responsibility of past leadership. A 2015 law passed by Michigan Republicans automatically lowered the state income tax if the state general funds revenue increases at a rate greater than inflation.
Matt Hall, Michigan House Republican Leader said:
“Visionary Republican leadership paved the way for a likely tax cut this year,” said Hall, of Richland Township. “The state government is running a huge surplus of taxpayer revenues, while Michiganders are struggling with the rising cost of living. In previous years, Democrats have looked into blocking this tax cut law, but they should think twice before obstructing relief for Michigan families. Republicans will work to protect the law and ensure Michigan families get the relief they were promised.”
Aric Nesbitt, Michigan Senate Minority Leader, said:
“While this income tax rollback is welcome news, more can and should be done to help all of Michigan’s families, seniors and other individuals who are trying to make ends meet while their state government brings in historic budget surpluses. We cannot be in the business of picking winners and losers when all Michiganders need relief; I remain open to working with my colleagues across the aisle on any meaningful tax relief that will help every person in this great state.”
Figures for this year show that Michigan has a surplus of $9.2 billion, which will automatically reduce the income tax rate from 4.25 to 4%. ATR urges the legislature to follow the law as written. Michigan Democrats must not forget that this surplus belongs to all taxpayers and should use deliver tax relief for all.
Michigan Democrats’ plan creates a system of winners and losers, and won’t provide the immediate relief that taxpayers need. Creating a system where large retirement income is prioritized over the income of working families ignores the needs of those struggling the most. The Democrats bill will keep taxes at their current rate for everyone until 2026 and be effectually useless to the narrow population it is claiming to help. Not only does the Democrats bill ignore the needs of working people, but it creates disparities amongst seniors; prioritizing those with public pensions, which those with retirement income or are still working benefit little to none. This bill is nothing but a payout to Democrat allies instead of Michigan taxpayers.