Skubick: Move on to cut or eliminate state income tax

UPDATE 4:15 p.m. Breaking news out of the State Capitol tonight where an effort is underway to completely eliminate the state income tax.

A source telling our Tim Skubick the controversial move will happen next Wednesday when Macomb County Republican Jack Brandenburg drops this bill.

He wants to form a work group to dive into the issue in seven other states where there is no income tax.

That includes Florida and Texas.

The senator does expect opposition from the Snyder administration but he is telling us tonight, “Michigan needs a game changer.”

LANSING, Mich (WLNS) – House Republicans are meeting behind closed doors to draft a new year’s agenda for the next legislative session that opens next week.

And there’s a possibility of you getting some extra cash in your paycheck.

For the Republicans in the Michigan House it is out with the old, former Speaker Kevin Cotter and in with the new Speaker Tom Leonard of DeWitt and in one of his first decision he created

a 14-person committee to set the agenda for the new year and turns out what of the top items is an old idea – cutting the state income tax rate.

“Clearly there’s some interest in going back to where we were on the income tax, if not out right elimination,” explained Kelly.

However, Gov. Rick Snyder has a new state budget to cobble together.

And to pay for state services, the governor needs money and giving some of it back could put a strain on some services.

The committee has not made any final decisions on the rollback as the chair concedes budgetary concerns need to be considered.

“That’s a valid clearly a valid statement and requirement,” Kelly continues. “These are wish lists. These are things of interest, these our of interest to our caucus.”

One of the unresolved issues hanging over the Michigan legislature is what will happen to the state’s health insurance program if President-elect Trump tosses Obamacare to the junk heap.

Would the state have to find the money to help 600,000 residents keep their first ever health insurance?

Republican Rep. Hank Vaupel concedes that is a challenge. “I think that is one of the big questions. What will happen. We don’t control that it’s a federal program. We will have to react whatever happens.”

The governor has already ruled out using state dollars to preserve the health care program if the Trump administration doesn’t do something to replace Obamacare.

Mr. Trump says he will do that but for now there is uncertainty.

While the committee will likely embrace an income tax cut for you it might be a good idea to not spend it just yet.

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