Also finalizes historic $2.5 billion tax cut plan
LANSING, Mich. — The Senate on Thursday approved legislation sponsored by Sen. Jon Bumstead to reduce taxes for owners of small- to medium-sized businesses and 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.
Senate Bill 392 would provide income tax relief for businesses by lowering the current tax rate of 6% to 3.9% to make Michigan more competitive with neighboring states.
“My bill is designed to help main street businesses throughout Michigan recover from the effects of the governor’s shutdowns while attracting new businesses and growing lucrative jobs,” said Bumstead, R-Newaygo. “We can’t afford to see Michigan lose good jobs and good people to neighboring states with a lower tax rate.”
The Senate also finalized SB 768 to help Michigan families by lowering the state’s personal income tax rate 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 seniors up to $40,000 for individuals and $80,000 for couples and lower the age of eligibility from 67 to 62.
“Michiganders are struggling with historic inflation and are being forced to stretch their budgets further and further each month,” Bumstead said. “Instead of growing government, we should let the hardworking people of our great state keep more of what they earn. I am disappointed the governor has already said she will veto this bill — our people deserve tax relief.”
SB 392 now advances to the House of Representatives for consideration, and SB 768 goes to the governor’s desk for consideration.