House panel OKs income tax cut over Snyder’s opposition

LANSING, MI - MARCH 06:  General view of the State Capitol Building in Lansing, MI on March 6, 2016 in Lansing, MI  (Photo by Scott Legato/Getty Images)

LANSING, MI - MARCH 06: General view of the State Capitol Building in Lansing, MI on March 6, 2016 in Lansing, MI (Photo by Scott Legato/Getty Images)

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.

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4 comments

  • Donna

    H*** no! I lived in WA for 5 years w/no income tax and it just made everything else more expensive! I would rather have a taxes taken out of my paycheck every week rather than pay $500+ for car tabs or pay up to 10% sales tax.

  • Common cents

    The state doesn’t have any of its own money and they don’t earn any money on their own. The only money the state receives is money that they steal from us taxpayers. the state will still be stealing our money but not as much money as they would like to steal.