Talk Of State Surplus Brings Talk Of Possible Tax Break - WLNS TV 6 Lansing - Jackson | Your Local News Leader

Talk Of State Surplus Brings Talk Of Possible Tax Break

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LANSING, Mich. (WLNS) - Michigan's economy is doing well enough to produce more cash than the state expected which means it won't be long before tax cut fever engulfs the state Senate and House, where Democratic Leader Tim Greimel has gone to the head of the line.

Greimel believes half of the surplus should go to schools and the other half to the people. "The remaining amount should be focused on tax relief for families who have seen their taxes go up over the last few years under republican legislators," said Rep. Greimel.

Long before there was talk of a surplus, GOP Senator Jack Brandenburg introduced a bill to slice the state income tax rate. He's expected to revisit that after the first of the year.

While lawmakers are talking about a tax rebate, the Snyder administration is not commenting.  Budget Director John Nixon says the size of the surplus has not been nailed down.

But Gov. Snyder says it's not the billion dollars that Greimel is talking about. He wouldn't tip his hand on whether he would embrace the rebate. The tax rebate discussion will be held next year which, is also an election year for everyone.

Even the state's top law enforcement office thinks a tax cut is in the cards. "The key for Michigan's future is how much of the someone's pay check can they keep. So we can encourage jobs and it would not surprise me that there are tax cuts in Michigan's future," said Attorney General Bill Schuette.

The last time a massive tax cut came from the former governor, John Engler, it offered a $2 billion cut over five years, but that put a strain on state services.

So that's when democratic Gov. Jennifer Granholm came into office. She had to raise taxes to restore those services, which is precisely the thing Snyder doesn't want to repeat.

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