- Michigan House passes bill to cap state income tax at 4.05%, saving residents $20 per $10,000.
- Republicans argue the tax cut provides much-needed relief for residents and businesses.
- Some Democrats oppose the cut, calling for higher taxes on the wealthy to fund broader relief.
A change that would impact neighbor's wallets passed the state House Tuesday.
The bill, which lowers and keeps the state income tax at 4.05% regardless of state revenue, was approved with bipartisan support.
It would save you an extra 20 dollars for every 10,000 dollars, compared to the 2024 tax rate of 4.25%.
"My bills will provide much-needed income tax relief for all of Michigan's residents and small businesses. Every little bit counts," Republican State Representative Kathy Schmaltz said.
Some Democrats say this tax cut won't help neighbors save money.
"If we really want to provide robust relief for most of the folks we represent, we should start by asking the wealthy to pay more so all of us could pay a little bit less," Democratic State Representative Jasper Martus said.
The bill is now on its way to the State Senate
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