Early projections show Michigan’s revenue could be high enough to trigger an automatic income tax cut laid out in a 2015 law.
Republican lawmakers say they should get credit for the policy.
If projections don’t drastically change, Michigan residents could see their income tax rates drop from 4.25% to 4.05%.
Republican Senate Minority Leader Aric Nesbitt (R-Porter Twp) estimated the cuts would come out to around $500 million total.
“I think it’s important and it’s great to show that these Republican efforts -- that when the growth of government’s that high and that fast -- that we can see some return to all hard-working Michigan taxpayers and get them back the dollars that they deserve. That it’s their dollars, not the government’s dollars,” Nesbitt said.
Republicans are warning the legislative Democratic majority against making any changes to the projected cut, though Democrats haven’t outlined any plans to do so.
Amber McCann is a spokesperson for House Speaker Joe Tate (D-Detroit).
“Because we have not completed other outstanding items like close-of-books or a final decision on any kind of tax relief, I think it is premature to assume that this policy will be in fact triggered,” she said.
The state Senate sent a bill package to the House Wednesday to close the books on last fiscal year’s budget. Meanwhile, lawmakers on both sides of the aisle are at odds over competing tax-cut plans to benefit retirees and seniors in the state.
