LANSING, Mich. — The state Senate on Tuesday approved a historic $2.5 billion tax cut plan that included Sen. Aric Nesbitt’s legislation to reduce personal and business income tax rates and provide families with a $500 per child tax credit.
“Michigan is looking at a massive budget surplus, and the governor’s proposed 2023 spending plan has many state departments and big spending politicians licking their chops for a piece of the pie. The disconnect between those inside the Capitol loop and families around the kitchen table is astounding,” said Nesbitt, R-Lawton.
“This budget surplus does not belong to the state’s treasury — it is not the governor’s money or the Legislature’s money; it’s the people’s money. And right now, all Michiganders need to be sending less of it to Lansing, so they have more of it to fill up their cars, heat their homes, and feed their families.”
Senate Bill 768 would help Michigan families by reducing the state’s income tax back to 3.9% and creating a $500 tax credit for each child under the age of 19.
The legislation also increases the tax exemption for all retirement income to $30,000 for individuals and $60,000 for couples.
And to help Michigan businesses that survived the pandemic and shutdowns of our economy get back on their feet, SB 768 lowers the state’s business income tax from 6% to 3.9%, which would make Michigan’s rate among the lowest in the Midwest.
“The time has come to combat the historic economic challenges caused by unilateral statewide pandemic shutdowns, out-of-control Washington spending and 40-year record inflation with historic tax relief,” Nesbitt said. “Reducing these tax burdens will supercharge our economic bounce back, help families, and attract more job providers and economic growth to Michigan — leaving more resources with families and small businesses, expanding freedom, and encouraging hard work and investment, which are the cornerstones of a healthy economy.”