House panel OKs income tax cut over Snyder’s opposition
LANSING, Mich. (AP) — A Republican-led House panel has voted to cut Michigan’s income tax and eliminate it over a number of decades despite “serious concerns” lodged by Gov. Rick Snyder.
Supporters say the bill approved 7-4 Wednesday would fulfill a nearly decade-old promise to reduce the 4.25 percent tax to 3.9 percent after it was raised to balance the budget. Opponents say the tax cut would cost the state $680 million next budget year and $1.1 billion in the first full year at a time general funds are tightening.
State Treasurer Nick Khouri, citing “serious concerns” with the bill, said business and other taxes have dropped $2.8 billion since the Republican governor took office. But House Republicans countered average residents have not seen much relief and a tax cut would spur economic growth.