Michigan’s state income tax would be reduced to 3.9% under a proposal introduced by Representative David Martin (R-Davison).
Key Points:
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- Michigan’s current state income tax rate is 4.25%.
- The rate temporarily lowered in 2023 to 4.05% under a 2015 law.
- According to the sponsor, this would follow through on a promise made in 2007 when the rate was increased from 3.9% to 4.35% to avert a shutdown, which was said to be only temporary.
- In 2007, the deal was to reduce the rate back to 3.9% by 2015, however, that didn’t happen.
- Representative Martin believes a lower tax rate would spur job growth and given the higher-than-expected revenue Michigan can afford to reduce the rate.
Next Steps:
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- The bill was referred to the House Government Operations Committee for consideration.
