LANSING, Mich.—Legislation that would incrementally lower the personal income tax on Michigan residents was introduced in the state Senate this week, said co-sponsor Sen. Mike Green.
Senate Bill 906 would reduce the personal income tax rate back to 3.9 percent by lowering the rate 0.1 percent each year beginning Jan. 1, 2014 until the desired rate is reached.
“This bill is about making good on promises to Michigan taxpayers,” said Green, R-Mayville. “During the budget crisis of 2007, a terrible decision was made to raise the personal income tax, and I am proud to support this measure to lower the rate back to where it was. Despite our improving economy, times are still tough and the costs of living continue to rise. It is only fair to the hardworking people of Michigan so they can keep more of what they’ve earned.”
The personal income tax was temporarily raised to 4.35 percent in 2007 to help balance the state budget, but with the clear understanding that it would eventually be rolled back to a rate of 3.9 percent. SB 906 is needed because current tax law provides only for a one-time rollback to 4.25 percent on Jan. 1, 2013.
SB 906 was sent to the Senate Finance Committee for consideration.