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Taxes

"In 2011 the Republicans in Lansing repealed the Michigan Business Tax and replaced it with a Corporate Income Tax. Like so many other Republican initiatives this bill was misnamed as, "An act to meet deficiencies in state funds by ..." What this bill really did was "create" deficiencies in state funds! Today, corporations ON NET make little or no tax contribution to the State of Michigan. This bill shifted the burden of paying for government away from those who benefit the most (big, profitable corporations and their owners) to those who benefit the least (retirees and low income workers)."

See House Bill 4361 (2011) a bill providing for general revisions and implementation of a corporate income tax.


"In 2012 the same Republicans that reduced income tax for most corporations eliminated another important source of revenue for the state, the manufacturing and commercial personal property tax. This and other fiscally irresponsible behavior is the primary reason the state of Michigan is in financial distress, cannot maintain infrastructure and is cutting services and payroll."

See Senate Bill 1067 (2012) and related bills which amended the General Property Tax Act to provide an exemption from personal property tax.


GRADUATED INCOME TAX

The individual income tax rate for Michigan in 2017 is a flat 4.25%. The proposed graduated individual income tax rate for the first $20,000 would be just 3.0% and over $20,000 up to $40,000 just 4.0%. For joint filers, the first $40,000 would be just 3.0% and over $40,000 up to $80,000 would be just 4.0%. Well over half of wage earners would experience a reduction in tax rates*.  Tax rates rise to 5%, 6% and so on until single and joint filers earning over $1 million would pay 10%.

*According to the Social Security Administration, median net compensation (wages) for working people nationally is $30,533.31. According to the Bureau of Labor Statistics, the median hourly wage in Michigan is $17.62 per hour which annualizes to $36,650. According to the U.S. Census Bureau median per capita income is estimated to be $27,549 and median household income is estimated to be $50,803.


See House Bill 4436 (2017), a bill providing for a graduated individual income tax rate.

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