Skubick: Tax rollback battle looms in Capitol

LANSING, Mich (WLNS) – Gov. Rick Snyder is on another collision course with some conservative Republicans who again want to roll back the state income tax rate while the governor opposes that.

It looks a lot like a repeat of what happened last year.

The governor is likely to get support for his plan to return $1.5 billion to Michigan taxpayers by restoring the personal state income tax exemption.

He would like to get that done quickly before some Republicans try to rollback the state income tax rate at the same time, which the governor opposes.

“It would be best if we moved this uncertainty as quickly as possible,” explained Lt. Gov. Brian Calley.

Republican candidate for governor Bill Schuette is out on the campaign trail calling for rolling back the income tax rate.

Recall that last year at this time the House Republican Speaker Tom Leonard tried to cut the income tax rate but failed because 12 Republicans voted no.

Rep. Larry Inman was one of the no votes and he expects this year a re-do of what happened last year. “You’re going to have the ultra-conservatives try to make the cut.”

In fact, the chair of the House tax committee is talking about that, saying it would help everybody.

Gilda Jacobs, an advocate for the needy, opposes that because it could mean cuts in the social safety net and result in another election year tax break for the rich.

“There are legislators who think that calling for a greater tax cut is something their constituents want but it’s generally going to help them,” explained Jacobs. “For every one-tenth percent cut in the rate, its a $250 million hit to our budget.”

The tax cut battle begins tomorrow as lawmakers return to town.

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