HomeIncome TaxMichigan House Accepts $2.5B Tax Bill with Income Tax Cuts, Senior Exemptions,...

Michigan House Accepts $2.5B Tax Bill with Income Tax Cuts, Senior Exemptions, and Child Tax Credits

Michigan’s House passed a roughly $2.5 billion tax plan on Tuesday, which includes lowering personal income tax rates and providing seniors with more exemptions and a $500 child tax credit.
Republicans in the House and Senate have proposed elements of the plan, as well as a separate spending bill that would add about $1.5 billion to fund government pensions that are underfunded, Detroitnews reported.

Despite three Republican votes against the legislation, the tax bill was passed with 62-42 votes with the help of Democratic lawmakers.

“If we can’t do it now when we’re looking at billions of dollars of surplus, then we’re never going to do it,” Rep. Matt Hall, said.

As part of a Senate-approved tax cut plan, a corporate income tax reduction was excluded from the House plan.

Senator Mike Shirkey, R-Clarklake, thanked House Speaker Jason Wentworth and House Republicans for moving the bill forward.

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“Senate Republicans are eager to send this bill to @GovWhitmer so we can get money back in the pockets of Michiganders facing record inflation ASAP!” Shirkey wrote on Twitter.

The tax exemption would allow an increased exemption level for all income for individuals over the age of 62, letting a single filer’s first $20,000 in income be exempt and for joint filers, their first $40,000. The exemptions would increase to $40,000 and $80,000 after age 67 when combined with existing retirement income exemptions for that age group.

According to Whitmer’s tax plan, however, the Earned Income Tax Credit would be increased, and the 4.25% personal income tax would be phased back for pensions. According to a summary from the Democratic governor’s office, the proposal would also restore deductions for private retirement income.

NATE GARTRELL
NATE GARTRELLhttps://theeastcountygazette.com/
NATE GARTRELL is an author at TheEastCountyGazette.com, a publication in the East County region of San Diego County. He has been writing for the Gazette since 2012 and writes on many different topics including politics, business, health care and more.
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