LANSING, Mich. — Sen. Doug Wozniak voted on Tuesday to approve legislation that would reduce state income tax rates for workers and job providers, saving them an estimated $2.5 billion by reducing the personal and corporate income tax rates to 3.9% from 4.25% and 6%, respectively.
Senate Bill 768 would also expand the income tax exemption for working and retired seniors, from $20,000 to $30,000 for individuals and from $40,000 to $60,000 for couples.
The bill would additionally provide families with a $500 per child tax credit for children age 19 and younger.
“State government is swimming in revenues, and last week the governor proposed the most expensive budget in state history. But what is good for government is not necessarily good government,” said Wozniak, R-Shelby Township. “When I talk to constituents, the picture isn’t so rosy. With inflation at its highest point in almost 40 years, the cost of living is outpacing incomes. Budgets are being stretched thinner and thinner by the week and tough decisions are having to be made. This is a very different story than what the governor is selling. It’s past time we do something to help our seniors, hardworking families and businesses to provide them the tax relief they deserve, and the bill we approved today will do just that.”
SB 768 now advances to the House of Representatives for consideration.