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state income tax

Fraser home falling into the sinkhole.
Bryce Huffman / Michigan Radio

A $3 million grant to fix the massive sinkhole in Fraser was at the center of a battle in the state Legislature this week. This Week in Review, Weekend Edition host Rebecca Kruth and senior news analyst Jack Lessenberry talk about the fight over the funding, which sparked a row between Macomb County Public Works commissioner Candice Miller and Senate Majority Leader Arlan Meekoff before ending in a stalemate.

The center strikes back. We are seeing a resurgence in the power of moderate Republicans in D.C. and Lansing.

Jack Lessenberry
Michigan Radio

President Donald Trump delivered his first speech to a joint session of Congress last night. This Week in Michigan Politics, Morning Edition host Doug Tribou and senior news analyst Jack Lessenberry talk about issues Trump touched on that resonate in Michigan, including a proposed $1 trillion investment in infrastructure nationwide.

chairs stacked on a desk in a classroom
Flickr user janine / http://j.mp/1SPGCl0

A Republican-backed bill to rollback Michigan's income tax died on the floor of the state House early Thursday morning. This Week in Review, Weekend Edition host Rebecca Kruth and senior news analyst Jack Lessenberry talk about fallout from the bill's failure, including a leadership change in Lansing.

We're also talking about the Trump administration's withdrawal of Obama-era guidance on transgender students' rights in schools, the state's delay on announcing which low-performing schools will be closed in the fall, and a new "fake news" course at the University of Michigan.

income tax
ccPixs.com / http://j.mp/1SPGCl0

In the first vote of the session, Republican leaders in the state House came up short.

In the wee hours of Thursday morning, the House took a roll call vote on legislation that would roll back the state income tax.

It was significantly different from its first iteration, but Republican leaders still couldn’t shore up enough votes to gain the majority.

Jack Lessenberry
Michigan Radio

The Department of Homeland Security revealed dramatic changes to its policies on Tuesday. This Week in Michigan Politics, Morning Edition host Doug Tribou and senior news analyst Jack Lessenberry talk about what those changes could mean in Michigan, where a number of cities have sanctuary measures in place or are considering them.

income tax
ccPixs.com / http://j.mp/1SPGCl0

Lawmakers in Lansing might not try to do away with the state income tax after all; but, they are still looking to reduce it.

A new version of the bill would gradually cut the tax from 4 point 25 percent to 3 point 9 percent.

Bill sponsor Representative Lee Chatfield says he is happy with the changes.

“Our goal all along has been to deliver on the promise made to the people back in 2007, and we think the legislation in its current form with the substitute accomplishes that goal,” he said.

Tax forms
flickr http://j.mp/1SPGCl0

State House Republicans are aggressively pushing through an income tax cut and rollback, despite numerous questions raised during a committee hearing about what funding cuts could happen in other areas if the bill passes.

A bill that would cut the state income tax and eventually phase it out altogether over 40 years was voted out of committee Wednesday. This happened after an hour and a half of testimony and over requests to hold off on a vote from some Democratic members.

In Lansing, the Michigan House Tax Policy Committee was to begin discussions today on a proposal that most Republicans are ecstatic about.

That would be a bill to immediately roll back our state income tax from 4.25 percent to 3.9 percent, and then keep cutting it by a tenth of a percent every year until it would be gone entirely. Well, completely getting rid of the income tax is a fantasy for four-year-olds.

Ken Teegardin / flickr http://j.mp/1SPGCl0

Some people expecting tax refunds may have to jump through an extra hoop to get them this year.

Jeremy Sampson is a spokesman for the Michigan Department of Treasury.

He says up to 100,000 letters will go out, asking people to verify their identity online, before they can get their refund.

It's to reduce identify theft and refund fraud, which is not a small problem.

"Last year the department was able to stop over 80,000 suspicious income tax refund requests," says Sampson, "and we were able to stop over $75 million of potentially fraudulent refunds."

John-Morgan / creative commons

Some Democrats are hoping to see a question on the 2016 ballot that would bring the graduated income tax to Michigan.

“And so you look at all the taxes that people pay, people in the middle and at the lower end are paying more of their income in taxes than the wealthy,” said State Rep. Jim Townsend, D-Royal Oak. “A graduated income tax would balance that out.”

Michigan files tax liens against CIA

Jul 14, 2014
Joy Weese Moll / Flickr

The Michigan Department of Treasury is going after the CIA for unpaid taxes. At least, that’s what newly uncovered documents would suggest.

Three tax liens were evidently filed by the Michigan Department of Treasury against the CIA between February 2012 and March of this year. They claim the agency did not pay state income taxes on behalf of an undisclosed number of CIA employees working in the state.

The documents were first reported by the Lansing State Journal.

Many questions still surround the tax assessments. Under state law, treasury officials cannot speak publicly about individual tax cases. The CIA would not talk on the record about the liens.

Steve Carmody/Michigan Radio

LANSING, Mich. (AP) - The Michigan Legislature formally kicked off 2014 with no heavy lifting. But voting could occur this week, when lawmakers also gather to hear Governor Rick Snyder's annual State of the State speech.

Budget work will dominate the first half of the year. Legislators have nearly $1 billion more to work with than expected, and one priority is spending more on road upkeep without raising taxes.

Lawmakers also are talking up an election-year tax cut, perhaps in the state income tax.

The FBI has just completed a nationwide sweep resulting in the arrest of 150 pimps and the rescue of 105 children who had been forced into prostitution. We took a closer look at human trafficking in our state.

And, we spoke with Leigh Ann Ulrey, one of 30 college graduates to be selected for the Challenge Detroit program.

And, a new House bill could eliminate state income tax. State Representative Bob Genetski joined us to talk about why he thinks income tax is unnecessary.

Also, self-driving cars could be available to consumers within the next 2-3 years, according to Google. We found out what the future of transportation might look like.

First on the show, there was an important handshake this afternoon in Lansing.

UAW President Bob King shook hands with state government officials to officially launch the start of contract talks.

UAW Local 6000's contract with the state expires at the end of 2014. But the state needs to finalize the next contract by the end of this year in order to get it funded in next year's budget. Local 6000 represents 17,000 state employees.

Let's look at what the big issues might be in the negotiations.

Rick Pluta, Michigan Public Radio Network's Lansing bureau chief, joined us today.

Republican state Representative Bob Genetski
Photo courtesy of Rep. Genetski's office

How would you like to say farewell to the state income tax?

State Representative Bob Genetski is a Republican from Saugatuck, and he thinks we should do just that.

He has introduced House Bill 4898, which Representative Genetski is calling the “Taxpayer Freedom Act,” and it would allow voters to decide whether to keep the state income tax or get rid of it.

Representative Bob Genetski joined us today.

Listen to the full interview above.

Photo courtesy of Michigan House Republicans / gophouse.org

There’s a proposal in Lansing to throw out the state’s income tax. The bill would let voters decide whether to keep the tax or get rid of it.

Republican state Representative Bob Genetski (Allegan County) says he’s heard “a lot” of complaints from his constituents about having to pay state income taxes. That’s especially since the state stopped exempting pensions from the tax last year.

User: Brother O'Mara / flickr

Governor Snyder to listen for finance issues in Presidential inauguration

"Governor Rick Snyder says he’ll be listening for plans to fix the nation’s finances in President Obama’s second inaugural address today. He says bickering in Washington about the fiscal cliff and the debt ceiling are delaying a more-robust economic recovery," Rick Pluta reports.

Changes in Michigan income taxes

"Michigan income tax returns for 20-12 will look a lot different than last year. That's because a slew of deductions and credits have disappeared. Many retirees will have to pay taxes on their pensions. The state's homestead property tax credit will go away for many people. And there won't be a credit for college and tuition fees anymore," Rina Miller reports.

A 26-year-old to replace Benton Harbor emergency manager

"The incoming emergency financial manager for the City of Benton Harbor doesn’t start until February First, but he’s already working hard to create new relationships and get a complete picture of the city’s finances.  Tony Saunders is 26. But he says people should consider his experience working in Detroit and Highland Park, not his age. Saunders replaces outgoing emergency manager Joe Harris," Lindsey Smith reports.

Governor Rick Snyder has signed a reduction in the state income tax.

Last year, Gov. Snyder and the Legislature delayed a reduction in the income tax rate to January 1 of 2013. This measure moves it up a little. Now, the rate will drop -- slightly -- to 4.25 percent on October first. There will also be an increase in the personal exemption.

Democrats say the tax relief offered is a pittance – about 50 cents a week – compared to the dozen tax breaks for working poor households, homeowners, and seniors on pensions that were eliminated last year as part of a Republican-led tax overhaul. That did not stop most from voting for the rollback.  

Republican leaders say the economy – and, therefore, revenue – has improved enough for the state to afford a tax cut. It also happens to coincide with an election year. The two Republican sponsors of the tax rollback come from competitive districts.

Lester Graham / Michigan Radio

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.

Rolling the Dice

Apr 18, 2011

We in the media have been paying a lot of attention to Governor Snyder’s attempts to push his program through the legislature. Mostly, we‘ve been preoccupied with the mechanics.

Last week, we talked about his compromise on the pension tax. Soon, we‘ll be discussing what seems likely to be the governor’s  success at cutting spending for the schools. Occasionally, we remember to mention the reason for all this painful budget slashing.