LANSING, Mich. — The Senate Finance Committee on Wednesday approved legislation to cut state income tax rates and encourage economic growth across Michigan, renewing Republican tax relief efforts in light of excess revenue.
“Families and small businesses are being hit hard by inflation. Our historic tax relief will reduce income taxes for hard-working families, provide a $500 tax credit per child, and reduce Michigan’s corporate tax rate to the lowest in the Midwest,” said Senator Aric Nesbitt, R-Lawton, who is vice-chairman of the committee. and is the original sponsor of Senate Bill 768. “The cornerstone of a healthy economy is leaving more resources to families and small businesses, expanding freedom, and encouraging hard work and investment.”
SB 768 would cut state personal and corporate income tax rates to 3.9% from 4.25% and 6%, respectively, and provide families with a $500 tax credit per child. Other tax relief measures recently approved by the committee include SB 467 to reduce tax rates for working and retired seniors, which is awaiting full Senate approval, and SB 378 to provide a child tax credit for hard working families that was sent to the House for consideration.
“In 2007 Michigan’s income tax rate was reduced from 3.9% to 4.35% and a promise was made to reduce it to 3.9% by 2015. Now is the time to delivering on the promise as the people of Michigan weathered the economic and supply chain disasters that followed bad one-sided policy decisions and historic levels of inflation — all as the state beats revenue forecasts” , said Senate Finance Committee Chairman Jim Runestad, R-White Lake, “It is long overdue for the governor and legislative leaders to come together and provide real and meaningful relief to the hard-working taxpayers of this state. Families and businesses can spend their money much better and more wisely than the government.
SB 768 now travels to the entire Senate for consideration.