MI Income Tax Rate to Decrease

Michigan currently has a projected billion dollar revenue surplus from last year through the next fiscal year. And there are moves underway to give at least a lot of it back to taxpayers. The Senate Finance Committee in Lansing on Wednesday approved one proposal that cuts the state’s income tax rate from the current 4.25% pert cent to 3.9% by 2017. Michigan House Republicans introduced their own proposal, which would phase in a reduction to 4.05% by 2016. In addition, the House GOP proposal would add another one-tenth of a percent decrease for every future year that revenue increases by at least 300 million dollars.The Governor is expected to formally unveil his tax relief proposal next week.