State House Rejects Income Tax Cut

The Republican-led Michigan House has defeated legislation to lower the state’s income tax. The bill that fell three votes short of passage early Thursday would lower the 4.25% tax to 4.05% by 2019 and then to 3.9% by 2021 as long as the state savings, or rainy day, fund is not below $1 billion. House Speaker Tom Leonard told Michigan News Network he was disappointed.

“It’s unfortunate,” Leonard said. “We wanted to produce legislation that was going to bring income tax relief to the hardworking taxpayers of the state.”

Twelve Republicans joined all but one Democrat in opposing the legislation. Among the Republicans voting against the plan was Representative Dave Pagel, of Berrien Springs. Governor Rick Snyder was also strongly opposed to the rollback, saying it would blow a hole in the budget of more than one-billion dollars.