Newly passed bill would encourage growth and boost competitiveness
Thursday, March 3, 2022|Font size:
Families across Michigan could soon see necessary tax relief thanks to a bill sent to Gov. Whitmer today by the state Legislature. Senate Bill 768 includes several tax changes, but most notably it would reduce the personal income tax rate back to 3.9%. This welcome change would increase economic growth and allow individuals across the state to keep more of what they earn.
Below is a statement from James Hohman, director of fiscal policy at the Mackinac Center for Public Policy.
Lowering the income tax will make Michigan more competitive, encourage small businesses and help Michigan’s economy recover faster. Individuals should be able to keep more of their hard-earned money. It’s encouraging to see lawmakers pass reforms to make that a reality.
Unfortunately, Gov. Whitmer has indicated that she is likely to veto these bills once they reach her desk. The governor claims the tax cuts are not sustainable, yet she is proposing a budget that is 25% higher than it was before the pandemic. Michigan has consistently seen strong revenue growth.
It’s clear that the state can afford to reduce taxes.
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.
Please consider contributing to our work to advance a freer and more prosperous state.