By Rick Pluta
Governor Rick Snyder has signed a reduction in the state income tax.
Last year, Governor Snyder and the Legislature delayed a reduction in the income tax rate to January first of 2013. This measure moves it up a little. Now, the rate will drop, slightly, to 4.25 percent on October first. There will also be an increase in the personal exemption.
Democrats say the tax relief offered is a pittance, about 50 cents a week, compared to the dozen tax breaks for working poor households, homeowners, and seniors on pensions that were eliminated last year as part of a Republican-led tax overhaul. That did not stop most from voting for the rollback.
Republican leaders say the economy and, therefore, revenue, has improved enough for the state to afford a tax cut. It also happens to coincide with an election year. The two Republican sponsors of the tax rollback come from competitive districts.
Copyright 2012, MPRN