Republican lawmakers push to cut Michigan income tax

Jan 24, 2012

A proposal at the state Capitol would cut the Michigan income tax rate to 3.9 percent over the next five years. Right now the rate is 4.35 percent.

Republican state Senator Jack Brandenburg sponsored the measure. He said people in Michigan were promised the reduction during messy budget and tax deals made in 2007. Brandenburg said he told his Republican colleagues about his plan earlier this month.

“At our caucus retreat, we were all asked to list our priorities, and I made it clear that this is one of my priorities,” Brandenburg said.

He said an estimated $450 million budget surplus convinced him it’s a good time to propose the rollback.

“I wanted to wait to see what kind of surpluses we were having. One-tenth of a point represents  $175 million,” said Brandenburg

Republican Senate Majority Leader Randy Richardville cautiously supports the proposal, but he said he’s hesitant to spend money that could be added to the state’s rainy day savings fund.

Democrats say surplus should be used to restore cuts made to K-12 schools and higher education.