New Bill Could Provide Long-term Relief for Michigan Taxpayers
Lawmaker who represents Hartland provides updates and views on various topics.
By Cindy Denby
Over the last year and a half, we have been working to get Michigan back on track. We have made a lot of progress on these efforts and our economy is starting to rebound. Since these efforts began, Michigan's unemployment rate has continued to fall, our credit rating outlook was upgraded, Newsweek listed Michigan as the number one state for job growth and Bloomberg News reported that Michigan has the second-fastest recovery rate from the recession in the country. While this progress is great, I know this meant shared sacrifice for many Michigan residents, which definitely wasn't easy. Due to these efforts and the cooperation of hard-working taxpayers, we are now in a position to begin to give back.
Last week, I voted for House Bill 5729 which provides long-term, broad-based tax relief for all Michigan taxpayers. The proposed plan will save Michigan taxpayers more than $2 billion by rolling back the income tax rate of 4.35 percent to 3.9 percent by 2018. Under this plan, by 2018 a family of four with $50,000 in annual income would save roughly $700. This plan also raises the state personal exemption tax deduction from $3,700 per person to $3,950 per person, which would be effective Oct. 1, 2012. By Jan. 1, 2014 the exemption will then increase to $4,000 per person and by Jan. 1, 2017 it will increase again to $4,100 per person.
In the meantime, the Michigan House passed legislation for immediate tax relief that would allow for Michigan taxpayers to keep more of their money. In the plan, a family of four would see an immediate tax exemption of $1000 and an additional $600 in just a few years.
Efforts to eliminate reckless government spending have put us in the position to give my local residents the tax relief they deserve. Last year's small business tax cut brought our state up from the bottom of the national rankings, making this state more competitive for jobs. This new long-term tax relief will make a big difference for Michigan residents and I'm pleased that we're able to starting giving back. The legislation now waits for consideration by the Michigan Senate.