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Cut in Michigan state income tax rate to be proposed

LANSING, MI (WTVB) - A cut in Michigan's personal income tax rate could be on the horizon. Senator John Proos of St. Joseph serves on the Senate Finance Committee and believes lawmakers will pass a rate reduction this year. Proos says in part it’s because the economy has recovered to such a degree we’re seeing revenues as much as a billion dollars more to the state of Michigan than had been expected.

Several Republican lawmakers tell Lansing’s MIRS News that the proposal to slash the rate from 4.25% 3.9% could be introduced later this month.  Senate Finance Committee chairman Jack Brandenburg of Harrison Township believes taxpayers will be saved between $150 and $200 million with every .10% cut in the tax rate.  He plans to have the proposal before his committee within weeks.