LANSING, MI (WLNS) – House Democrats want to take a billion dollars in tax relief from Michigan businesses and re-funnel it into tax credits for middle class families. But House Republicans have rejected the plan as we learn from 6 News Capitol Correspondent Tim Skubick.
Democrats complain that one of the first things republican Governor Rick Snyder did was to eliminate about a billion dollars in tax credits for families and re-directed that money into a tax cut for business.
Ever since, democrats have been trying to undo what the governor did and take some of the business tax credits back and give them to the average taxpayers.
The plan outlined here would provide higher education tax credits, a new credit for child and elderly care, an expanded home property tax credit and boost the per child income tax credit.
“Under our plan, a family with four with two working parents and two school age children could easily save over $1,500 per year,” said State Rep. Tim Greimel (d), house leader.
So where would the billion dollars come from to pay for it? The democrats want General Motors, Chrysler and other corporations to give back some of the tax credits they got under the old Granholm administration.
“The first and foremost place we need to look is renegotiating these massive and overly generous tax credits to major corporations in the state.”
The house republican speaker’s office dismisses the democratic plan as a “ridiculous wish list.”
Whenever democrats try to re-direct money from business to families, some republicans contend that a redistribution of wealth others call it socialism.
The house democratic leader calls it neither.
Reporter: “Isn’t this redistribution of wealth?”
State Rep. Greimel: “As I think I said pretty clearly, Tim, this is simply undoing a enormous tax shift that the republicans orchestrated. It was the republicans who redistributed wealth from the hard working people of the state to corporate interests; we’re simply undoing that tax shift.”
The democratic plan not expected to pass in the republican controlled house.