Republicans propose a tax cut for individuals, but is it enough?

May 25, 2012

Every Thursday we talk Michigan politics with Ken Sikkema, former Senate Majority Leader and Senior Policy Fellow at Public Sector Consultants, and Susan Demas, political analyst for Michigan Information and Research Service.

The Snyder Administration and the legislature are working to complete work on the state budget, and it sounds like they’ve made some progress towards a final deal.

With some opposition from Governor Snyder, Republicans are proposing a tax cut for individuals and families to the tune of $90 million. The amount of money that would actual filter back to the average taxpaying Michigan resident is less than a $1 a week.

"One of the risks they run is that it [tax relief] is so small, $20 to $25 a year for the average tax payer, that it kind of feeds into the Democratic argument about big tax cuts for business, but less than modest tax cuts for individuals. So the contrast gives the other side, kind of a talking point through out the election." Sikkema said.

In contrast to last year's budget, Sikkema said this budget is a "non-event...there is a little money but it's not a lot."

Demas added, "This budget like last year's budget was pretty well worked out by Republicans in the House, Senate, and the Snyder administration. And given the fact that we are in election year, certainly for the House I would not expect too many Democratic votes on any of these budgets."