Skubick: Groups react to talk of eliminating state income tax

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.”

We welcome thoughts and comments from our viewers. We ask that everyone keep their remarks civil and respectful. Postings that contain profanity, racist, or potentially libelous remarks will be deleted. We will delete any commercial postings, as well.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s