Post by Logan on Jan 25, 2017 3:26:13 GMT -6
5 things to know about the proposal to phase out Michigan's income tax
LANSING, MI -- A proposed a phase-out of Michigan's income tax hasn't gotten a hearing yet, but it's already raising questions in Lansing.
Here are five things to know:
It's gradual
Under the proposal, it would take 40 years for the income tax to actually go away. The tax is currently at 4.25 percent. It would decrease to 3.9 percent in 2018, and then decrease by 0.1 percent each year until it was completely eliminated.
State revenue would take a hit
According to a memo on the state's income tax the Senate Fiscal Agency released in 2015, the state's income tax makes up a significant percentage of the state's overall revenue picture. In Fiscal Year 2014, it made up a combined 39 percent of the state's School Aid Fund and General Fund, making it the state's single-largest source of revenue.
Read more: www.mlive.com/news/index.ssf/2017/01/5_things_to_know_about_the_pro.html
LANSING, MI -- A proposed a phase-out of Michigan's income tax hasn't gotten a hearing yet, but it's already raising questions in Lansing.
Here are five things to know:
It's gradual
Under the proposal, it would take 40 years for the income tax to actually go away. The tax is currently at 4.25 percent. It would decrease to 3.9 percent in 2018, and then decrease by 0.1 percent each year until it was completely eliminated.
State revenue would take a hit
According to a memo on the state's income tax the Senate Fiscal Agency released in 2015, the state's income tax makes up a significant percentage of the state's overall revenue picture. In Fiscal Year 2014, it made up a combined 39 percent of the state's School Aid Fund and General Fund, making it the state's single-largest source of revenue.
Read more: www.mlive.com/news/index.ssf/2017/01/5_things_to_know_about_the_pro.html