Skubick: State income tax battle heats up

LANSING, Mich (WLNS) – Michigan taxpayers are in line for a tax break this new legislative year but there could be a partisan fight over attempts to rollback the state income tax rate.

When the president signed the new federal tax cut package, Michigan taxpayers got an indirect $1.5 billion tax increase because they lost their personal state income tax exemption.

Gov. Snyder has proposed a plan to give that money back to taxpayers, but some key Republican lawmakers want to go beyond the governor’s recommendation.

Sen. Arlan Meekhof claims “I think it’s a good start.”

The senate Republican leader thinks part of the $1.5 billion could be used for other stuff instead of giving all of it back to you.

The senator explained “there’s many opportunities to do some things there including paying down debt and a bunch of other things that are fiscally responsible that we should look at.”

The Republican chair of the House Tax Committee is itching to rollback the state income tax rate with part of the $1.5 billion.

“I don’t think it could be used to eliminate it,” said Rep. Jim Tedder. “But certainly I believe there is a substantial argument that we could greatly reduce it.”

The senate Democratic leader argues doing that would give another tax break to the rich.

Sen. Jim Ananich says, “I think it’s a terrible idea. take the trump tax increase and redistribute the wealth unevenly to the people of the state.”

The governor has previously opposed a hefty income tax cut, but now Lt. Governor Brian Calley refuses to answer the question: Do you want to use part of the $1.5 billion for an income tax cut?

“I look forward to working with our partners and consulting with them on their points of view.”

When pressed to answer the tax question Mr. Calley said “we have a proposal on the table but there are a lot of people involved in the process.”

Since this is an election year it’s a good bet, Michigan taxpayers will be getting some money back from the state but nobody knows how much and when.

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