LANSING, Mich (WLNS) – The House Tax Policy committee, over the objections of the governor’s office, moved an income tax rollback bill to the House floor.
“It’s the right thing to do for the working class Michiganders,” said Rep. Jim Tedder.
State treasurer Nick Khouri has a different view “we do have serious concerns with the bill as written.
The Republican plan is to slice the income tax to 3.9 percent next year and then one-tenth of a percent for the next 39 years.
“We’re speaking out for the silent majority today,” says Rep. Tedder. “I grew up in a working class household. The people in the middle deserve a little bit of a break.”
But lobbyist Gilda Jacobs argues, the tax break will benefit the wealthy and not the little guy.
“If you’re making a bunch of money you’re going to get a $3700 tax break but if you’re making $22,000 you’ll get about $16.00,” claimed Jacobs.
The Snyder administration has not signed off.
“It’s a question of affordability and a question of balancing the budget,” said Khouri. “So if the revenue is going to be reduced by a billion where is the revenue replacements?”
Khouri said it’s unlikely the billion could be replaced.
Anti-tax crusader Leon Drolet believes the government has the money.
He says “The income for Michigan government through the income tax is up 38 percent while the income for families is down 8 percent, so government has been held harmless.”
The Senate has a five year phase out but the Republican leader there says he and the governor are far apart.
“I don’t know how you measure that. We are far apart,” insists Sen. Arlan Meekhof.
Which means the tax cut is not a done deal yet.