Legislators should budget for permanent income tax cut
Wednesday, June 28, 2023|Font size:
MIDLAND, Mich. — Michigan lawmakers are passing a budget that spends $500 million that they will not have. Earlier this year, a 2015 law triggered a personal income tax rate reduction from 4.25% to 4.05%. Attorney General Nessel announced that this would be a temporary reduction and rates would increase next year.
Below is a statement from James M. Hohman, director of fiscal policy at the Mackinac Center for Public Policy.
The budget is based on the false assumption that taxes are going to increase. The state cut taxes this year, but lawmakers are spending tax revenue on an erroneous legal interpretation of a statute that clearly and permanently lowers taxes. Lawmakers should do a better job of practicing restraint and avoid spending money that they’re not entitled to.
Read more about the personal income tax reduction here. Read more about the Michigan budget here.
The Mackinac Center for Public Policy is a nonprofit research and educational institute that advances the principles of free markets and limited government. Through our research and education programs, we challenge government overreach and advocate for a free-market approach to public policy that frees people to realize their potential and dreams.
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