Michigan State Senator Aric Nesbitt (R-Lawton) on Thursday introduced legislation to cut the state’s income tax rates.
The measure, Senate Bill 768, would reduce the personal and corporate income tax rates to 3.9% from 4.25% and 6%, respectively.
Furthermore, if enacted, families would be awarded a $500 per child tax credit.
“The people of Michigan have weathered substantial economic hardship in the wake of the coronavirus pandemic and now face historic inflation and high energy costs; the time has come to support them with historic tax relief and position our state for an epic economic recovery,” said the state senator.
Nesbitt cited the state’s revenue totals for the previous year, which exceeded the estimates provided during the budgeting process.
“The state continues to experience more revenue than estimates project each year. Considering the Legislature’s responsible budgeting and ongoing efforts to wisely invest federal dollars into the state’s infrastructure and future, the time is right to make these tax cuts for Michigan residents and businesses,” Nesbitt added.
Additionally, the state lawmaker highlighted the economic recovery that many families need, following lockdowns throughout the state during the coronavirus pandemic.
“Reducing these tax burdens will supercharge our economic bounce back, help families, and attract more investment and job providers to Michigan, where the business tax rate will be among the lowest in the Midwest. Families and businesses are able to spend their hard-earned dollars far better than government,” he continued.
Recently, the state’s use of taxpayer funds has faced harsh backlash.
A report from the Office of the Auditor General detailed that the state’s Unemployment Insurance Agency (UIA) overpaid $3.9 billion to residents who did not qualify for the funds.
Approximately 347,437 of the 648,100 individuals who received the letter from UIA were deemed to be ineligible for benefits.
– – –
Cooper Moran is a reporter for The Star News Network. Follow Cooper on Twitter. Email tips to [email protected]
Photo “Sen. Aric Nesbitt” by Senator Aric Nesbitt. Background Photo “Michigan State Capitol” by Ken Lund CC BY-SA 2.0.