Michigan Senate Committee Approves Income Tax Cut - WLNS TV 6 Lansing - Jackson | Your Local News Leader

Michigan Senate Committee Approves Income Tax Cut

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LANSING, Mich. (WLNS-AP) - A legislative panel has voted to gradually cut Michigan's income tax from 4.25 percent to 3.9 percent within three years.

The 5-2 vote Wednesday from the Senate Finance Committee is the first since lawmakers were informed of a projected $1 billion budget surplus. But it may be months before a plan wins final approval because while legislators definitely want to provide tax relief this year, there's no consensus on how.

Republican Gov. Rick Snyder hasn't committed to a permanent income tax reduction and is expected to outline his own proposal next week.

"I think the governor has a plan but hasn't rolled it out yet," said Sen. Randy Richardville. "It's not this."

"As far as the governor not endorsing it, he said the same thing about right to work," said Sen. Jack Brandenburg. "I hope he sees the light."

Republicans controlling the committee voted for the tax cut, saying the economy does better when more money's in the hands of taxpayers. Democrats opposed the bill, saying income tax cuts have no discernible impact on economic growth.

The tentative plant to be announced next week include a $100 million give back tied to the economy for middle to low income residents.

There's no consensus on how to spend the state surplus. Governor Snyder is expected to lay out his plan next week with the release of the new budget.

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