Michigan taxpayers may be in for some sticker shock when they fill out their state income tax forms this year. That's because some tax credits and deductions that have been around for years have now been removed by the Snyder Administration.
The overall income tax rate for the 2012 tax year is lower than the year before, but gone are some of the traditional income tax credits that lower the tax bill for many michigan taxpayers. For example, you used to get a $600 credit for every child you had, but that's history.
Years ago, if you paid a local city income tax like folks in Lansing do, you got a credit for that, but now, that's also gone. If you donated to your local food bank or other charities, that tax deduction is also gone.
The director of this social service agency calls this a tax hike.
"It is bottom line a tax increase," said Gilda Jacobs, MI Public Policy Forum. "Anyone who has children is going to be affected and there are significant changes in terms of charitable deductions as well."
Based on your income, here is the typical increase in your state taxes based on Jacobs research:
The governor concedes some will pay more, but he argues, remember there was a state deficit to eliminate.
"We had a huge deficit. We had to deal with a billion and a half issue and make us more competitive to create jobs," said Governor Snyder. (Reporter) Will 51 percent pay more this year? "I don't know about the percentage, but there could be cases where that's going to happen."
Another tax hike is on the pensions of some seniors and the homestead tax deductions has been altered as well.
2820 East Saginaw Street,
Can’t find something?
All content © Copyright 2000 - 2014 Young Broadcasting of Lansing, Inc. A Media General Company.