Michigan House Republicans introduce income tax cut

MICHIGAN (WLUC) – Michigan House Republicans say they want to cut the state income tax for people and small businesses. On Wednesday, they introduced a new bill that would reverse an individual income tax imposed by Democrats at the start of 2024.
That raised the tax rate from 4.05% to 4.25%. An existing law had automatically lowered the rate to 4.05% in 2023, but Democrats misinterpreted the law and decided the tax cut would only last one year.
Rep. Dave Prestin (R-108th State House District) says the new bill includes language making the tax reduction permanent.
“Somehow, on their appeal on the language, they got it reversed,” Prestin said. “That it was only to be put into place for one year. So, our state income tax went down to 4.05% for that one year and then went right back up to 4.25% after that because of that interpretation. Every legislator that I’ve talked to that was a part of that insisted that was meant to be permanent.”