Legislators mull state income tax cut
Wed, 12 Feb 2014 22:54:39 GMT —
Michiganders might see some income tax relief but first legislators in Lansing have to strike a deal.
â??The argument is whether you want to reduce taxes or want to spend money on roads and schools or other traditional governmental activities,â?? says Paul Rozycki, a political science professor at Mott Community College.
Michigan is sitting on a $1-billion budget surplus. Republicans say that means it's time to cut taxes.
â??I think it'll put more money in people's pocket and allow them to have money to do other things with so it might stimulate the economy,â?? says Tony Shepherd of Flint.
Thatâ??s the same argument Republicans are making. But across the aisle, Democrats say-- invest in state programs.
"In some ways it's good, in some ways it's not good. Because (it's) more money that could be used to fund the homeless and fix the roads that need to be fixed,â?? says Raul Herrera of Flint.
â??During a campaign year, it's always nice to say your cut taxes but the bottom line is you got to pay for services,â?? says Rozycki.
Services like public safety, health costs and transportation. But some are taking it to the extreme and want to eliminate the state income tax altogether.
â??A lot of the states throughout the nation that are adding jobs and adding population, happen to be the states that have done away with their state income tax,â?? says Rep. Bob Genetski, a republican representing Allegan County.
â??I don't think it's going to get very far at all,â?? says Rozycki. â??The state income tax is a huge part of the state budget and realistically there'd be such a loss of revenue Iâ??m not sure how they'd replace those funds,â?? he adds.
Michiganâ??s income tax rate was cut from 4.35-percent to 4.25-percent in 2012.