Proposed income tax rollback has little effect on middle class families
WASHINGTON, D.C. – January 30, 2014 – (RealEstateRama) — Senate Democrats chided a Republican proposal for a small scale income tax rollback that passed out of committee today as nothing more than a political stunt in an election year. Democrats note that Republican tax changes such as the Pension Tax and reduction of the Homestead Property Tax Credit have a much higher negative impact on taxpayers. The minor income tax change introduced by Republicans equates to 35 cents per day for the average Michigan family.
“The Democrats have been trying to provide meaningful tax relief for Michigan citizens by introducing legislation to repeal the Pension Tax and restore the Homestead Property Tax Credit and other credits that provide targeted relief to working families,” said Senator Steve Bieda (D- Warren) vice chair of the Senate Committee on Finance. “People want to see their government budget the way that the average family would budget. This income tax rollback is based on projected revenue, not money the state currently has. I don’t know too many families that spend money they don’t have yet.”
In 2010, prior to the Republican elimination of many tax credits, the typical Michigan family of three had a total state tax liability of $38 after tax credits. Following the Republican tax changes, that same family owed $1,476 in 2013. Rolling back the income tax would only save this family $128.17, still leaving their tax liability 35 times greater than it was in 2010.
Democrats have called for investing any surplus money into restoring some of the $2 billion that Republicans have slashed from K-12 schools in recent years.