LANSING, Mich. — The Senate on Thursday finalized a historic $2.5 billion tax cut plan that would reduce Michigan workers’ personal income tax rates and provide families with a $500 per child tax credit.
“This is the right plan for the right time — putting much-needed money back into the hands of hardworking Michiganders to help them combat ever-increasing costs of living caused by rising inflation and out-of-control government spending in Washington, D.C.,” said Senate Majority Floor Leader Dan Lauwers, R-Brockway Township. “I am hopeful the governor will keep her word and sign this important tax relief without delay.”
Senate Bill 768 would help Michigan families by reducing the state’s personal income tax rate back to 3.9% and creating a $500 tax credit for each child under the age of 19. The legislation would also increase the tax deduction for all retirement income to $40,000 for individuals and $80,000 for couples and lower the age of eligibility from 67 to 62.
The bill now goes to the governor for consideration.