UPDATE 2:00 a.m. – The Republican-led Michigan House has defeated legislation to lower the state’s income tax.
The bill that fell three votes short of passage early Thursday would lower the 4.25 percent tax to 4.05 percent by 2019 and then to 3.9 percent by 2021 as long as the state savings, or rainy day, fund is not below $1 billion.
Twelve Republicans joined all but one Democrat in opposing the legislation.
Republican Gov. Rick Snyder has voiced concerns about the budget implications of a tax cut.
Conservatives say Michigan’s income tax should return to 3.9 percent, where it was as recently as 2007 before being increased to address a budget deficit.
LANSING, Mich (WLNS) – A move to rollback the Michigan state income tax is struggling in the House. 6 News Capitol correspondent Tim Skubick explains what’s behind the resistance in the video above.