LANSING, Mich. — The Senate Finance Committee on Wednesday approved legislation to reduce state income tax rates and encourage economic growth across Michigan, renewing Republican tax relief efforts in light of surplus revenue.
“Families and small businesses are being hit hard by inflation. Our historic tax relief will lower income taxes on hardworking families, provide a $500 per child tax credit, and reduce Michigan’s business tax rate to the lowest in the Midwest,” said Sen. Aric Nesbitt, R-Lawton, who serves as committee vice chair and is the original sponsor of Senate Bill 768. “The cornerstone of a healthy economy is leaving more resources with families and small businesses, expanding freedom, and encouraging hard work and investment.”
SB 768 would lower the state’s personal and corporate income tax rates to 3.9% from 4.25% and 6%, respectively, and provide families with a $500 per child tax credit. Other tax relief measures recently approved by the committee include SB 467 to reduce tax rates for working and retired seniors, which awaits approval by the full Senate, and SB 378 to provide a child tax credit for hardworking families that has been sent to the House for consideration.
“In 2007, Michigan’s income tax rate was increased from 3.9% to 4.35% and a promise was made to roll it back to 3.9% by 2015. Now is the time to keep the promise as the people of Michigan have weathered economic and supply chain disasters that have followed the poor unilateral policy decisions, and historic levels of inflation — all while the state is exceeding revenue projections,” said Senate Finance Committee Chair Jim Runestad, R-White Lake. “It’s past time for the governor and legislative leaders to come together and provide real and meaningful relief to the hardworking taxpayers of this state. Families and businesses can spend their dollars far better and wiser than the government can.”
SB 768 now moves to the full Senate for consideration.