LANSING, Mich (WLNS) – Special interest groups are responding to the possibility that the state income tax may be eliminated.
It’s a story 6 News Capital correspondent Tim Skubick broke Wednesday.
Republican senator Jack Brandenburg has a plan to zero out the state income tax and a plan to replace the $10 billion in lost revenue.
But some special interest groups, at first blush, are concerned.
That’s because the current income tax funds higher education, public safety, programs for senior citizens and education.
The chair of the House Tax Policy committee is excited about wiping out the income tax but he’s concerned about the impact on state services.
Jennifer Smith, a lobbyist for state school boards, is wondering how to replace the revenue if the income tax goes away. “We receive in excess of $400 million out of the income tax every year and having to fill that hole would be quite difficult.”
There are also concerns at the local government which get money from the state.
Former mayor and now state representative Jim Ellison explains “all municipalities are in trouble right now in how we are financed.”
Rep. Ellison agrees that if there is no income tax, districts would have to raise the money locally.
Sen. Brandenburg will release the details of his plan shortly and when he does he tells all of these concerned special interest groups “no one will be hurt.”