The checks would be mailed to each and every taxpayer in the state. The idea arose from a squabble between Republicans and Democrats over how to spend the state’s massive budget surplus following the pandemic, according to the article.
Republicans, on the other hand, have pressed for more. They want Michigan to reduce the state income tax rate from 4.25% to 4.05%.
Michigan could afford it because it has billions of dollars in cash reserves. However, the lower rate would siphon about $600 million from the state budget, which Democrats fear will come back to bite the state when the surplus runs out in five or six years.
A lower income tax rate would result in savings, but those savings would not be realized until someone received their taxes and saw how much less money was paid to the state.
Read the full story here.
About Post Author
