State Rep. Andrew Beeler today backed a plan to lower taxes for all Michigan taxpayers.
The more than $2.5 billion tax relief plan would save taxpayers by cutting the income tax rate, increasing deductions and expanding veteran tax exemptions. The new plan comes after Gov. Gretchen Whitmer vetoed previous bipartisan efforts to lower the income tax and pause the state’s motor fuel tax.
“Irresponsible spending by the federal government has caused runaway inflation, kneecapping families in Sanilac and St. Clair counties,” said Beeler, R-Port Huron. “It’s past time we demonstrate that money is better spent by those who earn it than by the government.”
The plan would lower the individual income tax rate across the board from 4.25% to 4% and increase the personal income tax exemption by $1,800. Seniors age 67 and older who may currently deduct $20,000 of income individually or $40,000 jointly would be eligible for an increase of $1,800 or $3,600, respectively, with future increases automatically adjusted for inflation. Families would be eligible for a $500 nonrefundable tax credit for each dependent 18 years old or younger.
Additionally, the plan would allow for the surviving spouse of a veteran with a total and permanent disability to claim the veteran’s property tax exemption. Veterans with a disability determined to be between 50% and 100% would be eligible for a property tax credit up to $2,000. Finally, the state would pay local governments to prevent lost revenue from the veteran exemptions.
The bulk of the tax plan, contained in House Bill 4568, passed the Senate and House of Representatives today and now advances to the governor for consideration. The remainder of the plan in Senate Bill 784 passed the Senate and is expected to pass the House early next week.