Rep. Sue Allor announced her support for a House plan that will lower income taxes for all Michiganders, give seniors additional tax relief, and pay down municipal pension debt.
“One of the items I have heard at my district office hours for years now has been regarding burdensome taxes,” said Allor, of Wolverine. “I am happy to support tax cuts, especially when it addresses one of the most common concerns that have been brought to me by local citizens.”
The plan approved by the House Tax Policy and House Appropriations committee cuts taxes for Michigan workers, provides genuine tax savings for retirees and pension protections, and guarantees vital benefits for more people who have worked and served in their communities.
House Bill 5838 provides an estimated $1.7 billion in annual, ongoing tax relief. It starts with rolling back the income tax rate to 3.9 percent – down from the current 4.25 percent – for all individual payers of the Michigan income tax.
Seniors would be in line for additional relief. The income exempted from taxes for those 62 and older would rise to $20,000 for individual filers and $40,000 for joint filers. An additional exemption would be applied specifically to retirement income – also at $20,000 for single filers and $40,000 for joint filers.
House Bill 5054 provides $1.5 billion in one-time funding to reduce debt and improve the finances of public employee retirement systems. Most of the funding would go to pension plans for local governments and road commissions, with an additional $350 million to improve financing in the Michigan State Police retirement system.
“The best thing to do when the state has a surplus is not to spend it – rather give it back to the people, after all it’s their money,” Allor said. “People know how to spend their own money better than the government does. This was the right thing to do.”
HBs 5838 and 5054 now move to the full House for further consideration.
State Rep. Sue Allor and the Michigan Legislature approved a budget that will bring improvements to Northern Michigan, including the lives of seniors, students, and those who could benefit from better access to mental health care.