LANSING, Mich. — Sen. Curt VanderWall on Tuesday celebrated the Senate’s passage of a historic $2.5 billion tax cut plan to reduce personal and business income tax rates, provide families with a $500 per child tax credit, and protect more retirement income for Michigan’s seniors.
Senate Bill 768, which was co-sponsored by VanderWall, would lower the state’s personal and business income tax rates to 3.9% from 4.25% and 6%, respectively, and provide families with a $500 per child tax credit. The legislation also increases the tax exemption for all retirement income to $30,000 for individuals and $60,000 for couples.
“I was very happy to cast my vote for this sweeping and much-needed tax break for Michiganders,” said VanderWall, R-Ludington. “This relief is especially needed for our state’s seniors who are struggling against historic inflation on fixed budgets, as well as many others who are working hard to put food on their tables, heat their homes, and fill their gas tanks while they continue to recover from the unilateral policy decisions that forced our state’s economy to a halt in 2020.”
VanderWall noted the legislation reverts Michigan income tax rates to where they were 16 years ago. In 2006, rates for individuals and businesses were raised from 3.9% to their current levels. This was supposed to be a temporary measure to help bolster state finances, but the rate was never reverted.
“We now have a real opportunity to keep our promise to the people of Michigan and finally reduce the tax burden. Michigan is looking at a massive budget surplus; our state’s wallet is overflowing while many families and seniors are living on budgets that are getting thinner and thinner,” VanderWall said. “Providing tax relief to all the hardworking people of this state is not only a prudent and economically responsible thing to do, it is also the right thing to do.”
SB 768 now moves to the House of Representatives for consideration.